article thumbnail

The Option Pool Shuffle

venturehacks.com

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.

article thumbnail

Startups: Cut the Wheat from the Chaff on Quora

VC Cafe

L et’s face it: with the amount of information we get on a daily basis through browsing and reading news, RSS, Twitter, Facebook and other sources, it’s becoming increasingly harder to cut the wheat from the chaff. How do bootstrapped companies hire talent?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Everything you ever wanted to know about advisors, Part 1

venturehacks.com

This is the advisor paradox : hire advisors for good advice but don’t follow it, apply it. Your task is to hire the maverick advisors in the crowd. Hiring advisors is an ongoing effort. Then hire him if you like the results. 6 responses so far · Comments RSS. The Option Pool Shuffle.

article thumbnail

The Equity Equation

venturehacks.com

In practice, you raise money or hire an employee because you need to, not because you want to. Say the equity equation tells you to pay a prospective hire above market. You should still pay the hire a market rate and save the company some equity. Say the equity equation tells you to pay a prospective hire below market.

Equity 40
article thumbnail

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. -.

Warrant 40
article thumbnail

Founders versus early employees

www.startupnorth.ca

Being an early hire at a startup gives an individual the ability to make tremendous impact on an organization as it grows – and both the founders and those hires should know it.” This should force companies to think about building value with each early hire, and not just filling a position. It’s just unfeasible.

article thumbnail

Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer

thestartuplawyer.com

Who must be a co founder and who can remain a hired principal? When I find, and hire on options, the three perfect CEs/directors must I consider them co founders and treat them accordingly? Who must be a co founder and who can remain a hired principal? He obviously never launched a startup and got shafted by a co-founder.