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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

I’m not sure I really even need to write this at length because Nivi absolutely nailed the topic in his article “ The Option Pool Shuffle.&#. When I went to raise money in 2006 I thought I knew every term in a term sheet but somehow I still got a bit duped by the option pool shuffle. No option pool shuffle.

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Why I left Wall Street to figure it out.

Austin Startup

This was my time at a Wall Street firm that had hired me after I applied for their Junior Stockbroker position, a little while after I graduated from college. I thought of a name and settled on Kilimanjaro, after the highest mountain in Africa. I heard them but said nothing. And the thought will not leave. And we got back to work.

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The BSList - Busted Cap Table (No. 104)

This is going to be BIG.

Here’s the option pool that I think fairly incentivizes you. Like, if you gave away 99% of the company to the person who came up with the name or who sold you the domain, a VC is going to assume that this is the first in a string of seriously bad decisions. Here’s the pre-money that I need to get my ownership target.

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Should You Share Equity with Consultants?

www.inc.com

Naming a Business. 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 Create an options pool, if nothing more than in your mind, so you have some parameters to work within," Durkin says. Newsletters.

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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. QUESTION #1: This leads to our cap table clean up question #1, namely is that the right allocation?

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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. Often difficult to get, the first engineer sets the tone for the rest of the development team.

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Using warrants to pump up your VC valuation

www.mattbartus.com

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. What questions should I ask the lawyers I am considering hiring? Take a look at the numbers: Pre-Money. Post-Money. Series A. -. Post-Money. Series A. -.

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