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SoCal CTO
NOVEMBER 14, 2012
I was just asked about a particular startup situation (seed stage, CMO hire, non-founder) and particularly what compensation and equity is appropriate. Quick & Dirty How-To: Employee Stock Option Allocations Seed Stage Compensation What are typical compensation numbers?
www.paulgraham.com
OCTOBER 23, 2010
Angels In the big angel rounds that increasingly compete with series Arounds, the investors wont take as much equity as VCs do now. AndVCs who try to compete with angels by doing more, smaller dealswill probably find they have to take less equity to do it. 13 ]Im not saying option pools themselves will go away.
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David Teten
DECEMBER 3, 2019
Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).
The Next Web
OCTOBER 7, 2013
Quite frankly, waiting provides more assurance around employment risk without the commensurate sacrifice in equity comp. Startup employees are granted common shares out of something called an option pool. Why not wait until the opportunity to be engineer #10, #20, #100? Facebook’s engineer #100 isn’t doing poorly.
Professor VC
JANUARY 17, 2008
The theme of the event was angel investment trends for 2008. There needs to be enough equity to go around for founders, early investors, later investors, and employees. At a $1 million, pre-money, with an investment of $500K, that would leave 67% of the company for the founders and initial option pool.
www.paulgraham.com
APRIL 28, 2010
I suspect VCs accept business plans "over the transom" more as away to keep tabs on industry trends than as a source of deals. It costs you a little more equity, but being able to play the two firms off each other (as well as ask one if the other is being out of line) is invaluable. So after this the option pool is down to 13.7%). [
www.paulgraham.com
OCTOBER 23, 2010
The trends weve been seeing are probably not YC-specific. Founders never really likedgiving up as much equity as VCs wanted. 5 ]In a series A round, you usually have to give up more thanthe actual amount of stock the VCs buy, because they insist youdilute yourselves to set aside an "option pool" as well.
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