Both Sides of the Table

AUGUST 3, 2010

But to be clear the overwhelming majority of deals involve one company driving the cultural integration, establishment of uniform processes, hiring / firing decisions, etc. My version is, “you have a company with private stock. Somebody else is trying to convince you to sell to them in exchange for all stock.

Merger 276

Merger Technical Review Early Stage Dilution 276

Up and Running

SEPTEMBER 20, 2021

And as the company grows, it brings on new people and may decide to issue stock options to attract new staff and funding from investors. Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors. Common shares.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Berkonomics

NOVEMBER 23, 2023

Some rules about stock options and phantom stock: [Email readers, continue here…] The real insight here is that stock options or phantom stock are the tools of early-stage businesses used to attract great talent when there is not enough cash to pay market rates. How about multiple classes of stock?

Equity 62

Equity Stock Options Vesting Early Stage 62

thinkspace.com

SEPTEMBER 7, 2012

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.

Equity 62

Equity Employee Founder CTO Hire 62

www.inc.com

SEPTEMBER 24, 2011

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 Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Berkonomics

SEPTEMBER 28, 2017

And then there are options: [Email readers, continue here…] Stock options or phantom stock are the tools of early stage businesses used to attract great talent when there is not enough cash to pay market rates. An option plan should carve out an addition of about 15% of the “fully diluted” shares.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

www.paulgraham.com

APRIL 28, 2010

A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. In an IPO, it might not merely addexpense, but change the outcome. Startups valuations aresupposed to rise over time.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Early Growth Financial Services

JUNE 26, 2014

Valuation — Know what these terms mean: Fully-diluted — This includes all issued stock and anything that could be converted into common stock (typically after an acquisition or IPO), such as your stock option pool.

Pre-Money Valuation 51

Pre-Money Valuation Option Pool Dilution Common Stock 51

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. And don’t forget that the options granted would come out of the available option pool.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

venturehacks.com

MARCH 21, 2008

You get money, save stock, and amplify the advisor’s social proof in the process. 0.25% of a company’s post-Series A stock. Super advisors The super advisor can get as much stock as a board member: 1%-2% of a company’s post-Series A stock. Advisory shares are normal common stock. Compensation 7.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

www.paulgraham.com

OCTOBER 23, 2010

In a traditional series A round, before the VCs invest theymake the company set aside a block of stock for future hires—usuallybetween 10 and 30% of the company. 13 ] The final thing founders want is to be able to sell some oftheir own stock in later rounds. 13 ]Im not saying option pools themselves will go away.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

Seeing Both Sides

JULY 15, 2009

Another term that impacts the price is the size of the option pool. Most VCs invest in companies that need to hire additional management team members and sales and marketing and technical talent to build the business. We put forward a “6 on 7” deal with a 20% option pool. I was competing with another firm.

Pre-Money Valuation 49

Pre-Money Valuation Option Pool Stock Options Post-Money Valuation 49

David Teten

DECEMBER 3, 2019

ff Venture Capital hired two full-time engineers to build out Totem. The Long Term Stock Exchange is building out a set of tools for founders for managing their cap tables, 409A valuations, cash on hand, options pool, investor relations, etc. Fincura specializes in serving lenders.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Genuine VC

FEBRUARY 28, 2011

Nearly all startup employees receive a number of options figure in their offer. ” The details surrounding stock options are often complex and confusing for non-financially-oriented individuals. On the equity side, each startup has a fixed option pool from which they’re drawing. Senior-level position.

Startup 121

Startup Equity Vesting Salary 121

Berkonomics

MAY 12, 2010

First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. An option plan should carve out an addition of about 15% of the “fully diluted” shares. a share, then options must be priced at that amount. There are some rules.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

Scott Edward Walker

NOVEMBER 26, 2017

The way the investor thinks about it is that, if you can’t figure out your way to network your way to [an investor],… then you’re unlikely to be able to network your way into hiring a great team, or network your way into selling your product to customers. (at www.youtube.com/watch?v=NEOR0AJsziE. v=NEOR0AJsziE.

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

www.instigatorblog.com

OCTOBER 23, 2010

I gave him similar numbers to what I had been given when I was hiring the first few employees for Standout Jobs. This is especially true when you think of a tech startup, where the first few hires are typically engineers/programmers. Jason Penny Stocks stockexplosion I completely agree with you. 1% is just not a lot.

Equity 41

Equity Employee Startup Vesting 41

www.payne.org

SEPTEMBER 22, 2011

2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. 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. From Payne.org Wiki.

Equity 56

Equity Employee Vesting Preferred Stock 56

venturehacks.com

SEPTEMBER 22, 2011

Paul says, “Whenever you’re trading stock in your company for anything, whether it’s money or an employee or a deal with another company, the test for whether to do it is the same. In practice, you raise money or hire an employee because you need to, not because you want to. If no, she is a no hire.

Equity 40

Equity Cap Table Valuation RSS 40

www.mattbartus.com

DECEMBER 9, 2012

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. an option to purchase shares in the future at a pre-determined price) to the investor to purchase preferred stock at the Series A price. Option Pool. Post-Money.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

www.startupnorth.ca

OCTOBER 23, 2010

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.

Employee 41

Employee Founder Salary Equity 41

thestartuplawyer.com

FEBRUARY 24, 2010

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.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40