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 $36 million is divided according to equity ownership. MORE >>

Develop an option budget that maps to the hires forecast in the operating plan Post funding, start-ups typically reserve an unallocated option pool of ~20%. Based on the hires in the operating plan, it is prudent to develop an option pool budget that allocates appropriate levels of budget grants to the forecast hires. MORE >>

Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Geeks can always be hired. Venture Hacks Good advice for startups. but it’s manageable. Date first. Coincidence? MORE >>

Stock vs Options. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. Stock vs Options. At that point, you would be an official stock holder with 25,000 shares and 75,000 unvested options. MORE >>

Though this is certainly an important element of the transaction there are other factors at play that have significant impact on the raw direct economics of the transaction including the employee stock option pool (and who pays for it). In fact, if this is your first startup, it’s possible you’ve never actually hired a lawyer before. MORE >>