Up and Running

DECEMBER 1, 2015

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. Stock options are issued to employees usually through an Employee Stock Option Plan (ESOP) and include what is called a “vesting period.” Restricted stock: .

Equity 60

Equity Employee Stock Options Vesting 60

Steve Blank

APRIL 10, 2019

Stock options for all employees of startups served several purposes: Because startups didn’t have much cash and couldn’t compete with large companies in salary offers, stock options dangled in front of a potential employee were like offering a lottery ticket in exchange for a lower salary. Not everyone got the same amount of stock.

Stock Options 333

Stock Options Stock Vesting Common Stock 333

www.mattbartus.com

SEPTEMBER 24, 2011

We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” Imagine when it comes time to sell the company and the buyer says “Tell me how many shares are vested because this will impact how much we pay per share.” What are the potential issues?

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

Steve Blank

OCTOBER 24, 2017

Hire a CEO to Go Public. The VCs would hire a CEO with a track record who looked and acted like the type of CEO Wall Street bankers expected to see in large companies. The role of the independent member was typically to tell the founding CEO that the VCs were hiring a new CEO.). People had to actually pay you for your product.

Founder 245

Founder Technical Review CTO Hire IPO 245

www.payne.org

SEPTEMBER 22, 2011

2 Stock Classes: Common and Preferred. 4 Vesting. 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.

Equity 56

Equity Employee Vesting Preferred Stock 56

ithacaVC

JUNE 20, 2011

Lawyer time required (including vesting agreements for founders): 3 to 6 hours. 2. You need (or think you need) a stock option plan: granting stock options (and other forms of equity compensation to employees like restricted stock) should be done under a written equity incentive plan.

Stock Options 58

Stock Options Vesting Subscription Agreement Founder Vesting 58

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. That is fine, and should be in the form of option grants vesting over time.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67