www.mattbartus.com

DECEMBER 9, 2012

Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. You have a 20% option pool, so you know this will take your ownership down from 80% to 60%, and the VC will get 25%. Option Pool. Option Pool.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Hunter Walker

MAY 7, 2014

There was no one waiting to sign on as soon as the term sheet was signed. For an investor this can be a red flag unless you have proven experience building up high quality team quickly or clear access to large talent pools that will want to work with you for some reason (the tech is so cool; you’ve got brand heat; etc).

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

venturehacks.com

OCTOBER 21, 2010

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS The Option Pool Shuffle by Nivi on April 10th, 2007 “Follow the money card!&# – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you. Don’t lose this game. share to $1.00/share:

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Feld Thoughts

FEBRUARY 28, 2023

Corporate law: In Germany, most companies in general and most VC-financed companies are structured in the legal form of a “Gesellschaft mit beschränkter Haftung” (GmbH). Often, this integration results in VC-financed GmbH companies having little to do with the GmbH as envisaged by the law. Both samples are bilingual.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

The Startup Lawyer

FEBRUARY 4, 2011

Other incubators may want to set up an option pool. If so, the startup’s founders need to know this option pool lowers your pre-money valuation. Like any issuance of stock or investment, one of the main things a startup should be concerned with is: Is this going to fuck up a future financing ? Conclusion.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Seeing Both Sides

JULY 15, 2009

VCs have an unfair advantage when it comes to financings. A typical start-up company will do 2-4 venture capital financings before a successful exit (or, conversely, an ignomious ending). In contrast, the typical venture capitalist, either individually or across their partnership, will do 5-10 financings in any given year.

Pre-Money Valuation 49

Pre-Money Valuation Option Pool Stock Options Post-Money Valuation 49

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. This move also undoubtedly created more inbound M&A opportunities for them. .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Scott Edward Walker

NOVEMBER 26, 2017

Indeed, this is critical in order to effectively negotiate any transaction (including a financing) – as every investment banker on Wall Street understands. As Travis Kalanick advises (in my favorite post on fundraising ): The second you have a single term sheet, you need to move *very* quickly to get a second one.

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

www.payne.org

SEPTEMBER 22, 2011

UPDATE: If youre a founder or near-founder, your equity terms are likely defined by the funding terms negotiated with the investors. For a very good summary of investor terms, see Brad Felds writeups on term sheet terms.

Equity 56

Equity Employee Vesting Preferred Stock 56