techcrunch.com

FEBRUARY 25, 2010

This is probably why investors’ case for a company to sell early f ocuses exclusively on the founder : in most early-stage acquisitions, the liquidation preferences and deal-sweeteners only work for investors and founders. The elephant in the room is that that founders and CEOs take almost all of it for themselves.

Liquidation Preference 63

Liquidation Preference Founder Option Pool Acquisition 63

ithacaVC

DECEMBER 13, 2013

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. If no additional equity is ever granted to Founder X and Founder Y, then Founder Y will ALWAYS own 1.63

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

Both Sides of the Table

NOVEMBER 4, 2009

BTW, this ignores liquidation preferences which actually mean you’ll earn less. Stock vests for 4 years. Best to be a founder. In California that averages around 42.5% so in my state after tax you’d make an extra $18,000 / year and that’s in a positive scenario! So let’s go CRAZY! Wait a second.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Scott Edward Walker

AUGUST 31, 2011

How should the founders divide the initial stock ownership? Conclusion There is too much at stake for entrepreneurs not to be represented by a smart, unbiased lawyer, who has no vested interest in the closing of a proposed financing. they usually play a much larger role in the businesses being started.

Silicon Valley 45

Silicon Valley Term Sheet Liquidation Preference Redemption 45

thestartuplawyer.com

FEBRUARY 24, 2010

He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder. You can start by examining every aspect of the co-founder relationship.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Pascal's View

DECEMBER 30, 2012

While every company founder makes trade-offs in building a company, few entrepreneurs appreciate the far-reaching implications of several critical decisions they will are required to make at the outset of a startup’s evolution. Most founders tend to make decisions with no process, based on their gut instincts.

Cofounder 34

Cofounder Liquidation Preference Vesting Equity 34

www.founderinstitute.com

MARCH 2, 2010

New "Plain Preferred" Term Sheet 08/24/2009: by Adeo Ressi Public: TheFunded Founder Institute has just released a new "Plain Preferred" term sheet with support of the blogosphere, including top-rated venture capitalist, Fred Wilson. The Plain Preferred term sheet aligns the investor and the entrepreneur incentives.

Term Sheet 40

Term Sheet Liquidation Preference Vesting San Diego 40

dondodge.typepad.com

JANUARY 15, 2011

The second and third rounds of funding take additional shares of equity and dilute existing investors and founders. Founders usually end up with 10% to 20%, all the other employees end up with about 15%, and the VCs end up with about 60% to 75%. Founders and VPs usually have about 10% and employees have about 15%.

Equity 40

Equity Employee Dilution Valuation 40

Both Sides of the Table

FEBRUARY 14, 2016

” “Mark has a vested interest in talking down valuations of startups.” Many founders don’t understand why inside rounds are so difficult. Also, new investors will be worried that the down round will cause founders or senior management to depart and no VC wants to replace management.

Valuation 150

Valuation Down Round Startup Later Stage 150