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Founders Should Set Aside More Equity for Their Team & “Split the Pain” With Investors

Hunter Walker

But employee option pool is important enough that I wanted to briefly expand upon my comment above. Since Homebrew typically leads/co-leads seed rounds, we assist in helping founders design and manage their pool against their hiring forecast. As you can see, Weekend VC Twitter gets pretty wild and crazy!!!!

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

  In a bottom up approach, the forecast is built from actual user projections.   In a bottom up approach, the forecast is built from actual user projections. .   And if they are built from the top down, they’re pretty much useless. [3] This is why a bottom up approach is more credible.

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10 Steps to Success With Angel Investors

Business Plan Blog

This process may include the provision of various scenarios on revenues and costs as the investors validate forecasts initially presented. A capitalization table showing the post-investment ownership structure of the business to include founders, option pool and investors in the current round. Professional fees and costs.

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How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

Chris Dixon wrote a blog post about “ The one number you should know about your equity grant “ The one number you should know about your equity grant is the percent of the company you are being granted (in options, shares, whatever – it doesn’t matter – just the % matters). Percent of the outstanding option pool: meaningless.

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The New Funding Landscape

www.paulgraham.com

The short term forecast is more competition between investors, whichis good news for you. 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. Fortunately if thisdoes happen it will take years.