VC Adventure

NOVEMBER 1, 2018

Most decisions are delegated to the CEO and management team. There are, of course, some items that the board has specific decision making authority over (buying another company, increasing the option pool, signing leases of a certain size, etc.). One of the key functions of a board is to hire and fire the CEO.

Design 257

Design Option Pool Operations Conversion 257

Austin Startup

JANUARY 25, 2020

The manager of the promotion knew me from having worked on another promotion at the previous year’s SXSW festival for State Farm, and she liked my work. I talked to the manager about this problem and called it off. How did I get the gig? That was when I decided I had to make a change, sadly?—?I

Delaware 62

Delaware SEC New York City New York 62

venturehacks.com

OCTOBER 21, 2010

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. share to $1.00/share:

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Eric Friedman

DECEMBER 30, 2020

Bullish in this space since 2015 I see the air cover in place for institutions and private wealth managers to now take the plunge. The calculus is that if the stock is going to be worth a fortune, they are better off paying for expertise early vs. take a risk on early full time employees risking option pool, culture fit, and ramp time.

Stock 120

Stock Private Equity Option Pool LP 120

www.inc.com

SEPTEMBER 24, 2011

Leadership & Managing | Tuesdays. LEADERSHIP & MANAGING. Managing Creativity. Durkin , managing partner with the Boston -based law firm Lucash, Gesmer & Updegrove LLP. Create an options pool, if nothing more than in your mind, so you have some parameters to work within," Durkin says. Technology | Thursdays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Both Sides of the Table

NOVEMBER 4, 2009

If you’re thinking about joining as the director of marketing, product management manager, senior architect, international business development lead, etc. Or you have to hit the lottery and be an early player middle management player at Google, Facebook, MySpace or Twitter. Let’s face it.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

VC Cafe

OCTOBER 16, 2010

Basecamp – project management. Instead of a 20% option pool, we created a 40% option pool, and gave out half of it to the first half-dozen hires who came on and were willing to work without salary for a period of time, forming the core team. 1 CEO who doubles as head of product management.

Option Pool 88

Option Pool Analytics LLC Startup 88

ithacaVC

JANUARY 24, 2013

Option pool: 500,000 shares (some issued, some reserved, but that is typically irrelevant as the whole pool is normally factored into the premoney share price calculation). It can get painful so make sure to manage your expectations. So, $3mm/(3,400,000+500,000) = $.7692 7692 per share.

Valuation 53

Valuation Balance Sheet Option Pool Dilution 53

Seeing Both Sides

JULY 15, 2009

The investors who provided the $4 million own 40% of the company and the management team owns 60%. 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.

Pre-Money Valuation 49

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

Hunter Walker

MAY 7, 2014

I’m not looking for a binary “correct” or “incorrect” assessment, I’m trying to understand if the founders have considered the topic and how they intend to manage. A bloated org full of fancy titles and layers of management? That’s not healthy for a startup. Won’t work out well.

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

Feld Thoughts

FEBRUARY 28, 2023

In addition, there are the managing directors as executive bodies. In the VC sector, it is common to introduce a third body in addition to the shareholders’ meeting and the management. Employee option pool: The framework conditions for employee option pools remain a major problem in Germany.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

ithacaVC

SEPTEMBER 4, 2011

Note how the new CTO Praveena implicitly negotiated to get her 15% founders shares after creation of the stock option pool. This is significant because Jane and Dick took all the dilution from the option pool creation. I think Brad’s post simplified a few things (a bit too much) so I will expand some here: 1.

Cap Table 49

Cap Table Finance Option Pool Warrant 49

David Teten

DECEMBER 3, 2019

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. 1) Manage the firm . This is harder than it sounds.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Professor VC

JANUARY 17, 2008

At a $1 million, pre-money, with an investment of $500K, that would leave 67% of the company for the founders and initial option pool. Keeping this simple with no employee option pool and just founders and investors, investors would hold 60% at this point (20% for angels and 40% for VCs) and founders would have 40%.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Tim Keane

JANUARY 12, 2010

Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values.   For individual angels and others investing their own money, this may be more fluid than for someone with responsibility for a managed fund.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

www.paulgraham.com

OCTOBER 23, 2010

7 ] And though theres going to be one investor who gives them the firstcheck, and his or her help in recruiting other investors willcertainly be welcome, this initial investor will no longer be thelead in the old sense of managing the round. 13 ]Im not saying option pools themselves will go away.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

www.instigatorblog.com

OCTOBER 23, 2010

You can’t have an option pool that takes up 50% of the company’s shares, and you have to leave room for future employees as well. Paul Graham offers up a formula for the equity challenge , which I think proves the fact that those first few employees deserve more.

Equity 41

Equity Employee Startup Vesting 41

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. A cap table will help you in the strategic management of business decisions. Here you can see that the founders own most of the shares at 67.7%, then the ESOP (employee stock option pool) at 12.31

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

venturehacks.com

DECEMBER 9, 2012

Advisors can help you think through business challenges, make key introductions and/or offer personal/management advice. The Option Pool Shuffle. Advisory boards are a good way for startup companies to get a broader network of people engaged in the business. They also help build credibility for your startup. Part 2: Deck.

Advisory Board 50

Advisory Board Cap Table RSS Cofounder 50

Berkonomics

NOVEMBER 23, 2023

Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%. That size of grant would take much or most of the option pool. All other grants usually are much lower, allowing for the typical 15% pool to last for quite a while in most companies. The post Be careful about equity and options!

Equity 62

Equity Stock Options Vesting Early Stage 62

www.startupnorth.ca

OCTOBER 23, 2010

Manager or Junior Engineer 0.2 – 0.33 Table 1: Options Grants in Silicon Valley for Series A from VentureHacks The numbers from VentureHacks are guidelines. They are rough estimates.Any one have sample option grants in Canada? Lead Engineer 0.5 – 1 5+ years experience Engineer 0.33 – 0.66

Employee 41

Employee Founder Salary Equity 41

www.paulgraham.com

APRIL 28, 2010

And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. The fund managers, who are called"general partners," get about 2% of the fund annually as a managementfee, plus about 20% of the funds gains. At Viaweb we managed to raise $2.5

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Berkonomics

SEPTEMBER 28, 2017

Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%. That size of grant would take much or most of the option pool. All other grants usually are much lower, allowing for the typical 15% pool to last for quite a while in most companies.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

venturehacks.com

FEBRUARY 24, 2010

but it’s manageable. 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. So can three founder companies (hello, @biz, @ev, and @jack). Learn more.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

www.payne.org

SEPTEMBER 22, 2011

Also, most companies try to keep all employees on the same terms, and there are good management reasons to do that. Companies allocate a pool of stock (usually called the Incentive Stock Option pool, or ISO pool) to grant to employees.

Equity 56

Equity Employee Vesting Preferred Stock 56

thinkspace.com

SEPTEMBER 7, 2012

Manager or Junior Engineer 0.2 - 0.33. 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). CEO 5 - 10.

Equity 62

Equity Employee Founder CTO Hire 62

Berkonomics

MAY 12, 2010

Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%. That size of grant would take much or most of the option pool. This provision allows these select individuals to perhaps profit handsomely in an acquisition by being able to exercise their options in full at the time of sale.

Early Stage 85

Early Stage Equity Stock Options Vesting 85