Remove Finance Remove Hiring Remove Option Pool Remove Vesting
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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

As Finance Fridays continues, we are introducing the concept of the Cap Table. This week they set out to create their cap table and hire a CTO. The founders each have common shares that will vest over four years. As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while.

Cap Table 133
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Equity for Early Employees in Early Stage Startups

SoCal CTO

For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. For example, suppose you're just two founders and you want to hire an additional hacker who's so good you feel he'll increase the average outcome of the whole company by 20%. Stock vests for 4 years.

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Should You Share Equity with Consultants?

www.inc.com

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We Start-up | Mondays. Technology | Thursdays.

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Cap Table Clean Up

ithacaVC

They are typically pretty simple: (i) shares owned by founders and (ii) shares authorized for issuance in a stock option pool, some of which may be issued to employees already and some of which will be available for future issuance. And don’t forget that the options granted would come out of the available option pool.

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Changing Equity Structures for Early Startup Employees

www.instigatorblog.com

I gave him similar numbers to what I had been given when I was hiring the first few employees for Standout Jobs. This is especially true when you think of a tech startup, where the first few hires are typically engineers/programmers. But I also told him that I though the numbers were wrong. .&# 1% is just not a lot.

Equity 41
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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

They were referring to non-founder engineers, most commonly the first hire for technology businesses. Startup employees are granted common shares out of something called an option pool. After a year, shares will vest in monthly or quarterly splits until the full grant is vested.

Engineer 129
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Memo to CEOs & Founders: Stop Being Such Cheap Bastards

techcrunch.com

You could make the same argument about acquisitions and option pools. Why aren’t we surprised when three months later that company can’t hire enough engineers? The 3-person executive team, including a CEO if one was hired, owns 10%, and splits $3.6 The remaining 95 employees split 7%, each earning $27,000.