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

Eric Friedman

DECEMBER 30, 2020

With the stock price off since IPO and the need to “rollup” enterprise chat + video MSFT takes a swing at solving a huge b2b problem with a startup friendly platform. Bullish in this space since 2015 I see the air cover in place for institutions and private wealth managers to now take the plunge. cash + stock vs. FTEs.

Stock 120

Stock Private Equity Option Pool LP 120

www.inc.com

SEPTEMBER 24, 2011

Leadership & Managing | Tuesdays. LEADERSHIP & MANAGING. Managing Creativity. 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. Determine when the consultant will receive the options. Personal Finance.

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. a share, then options must be priced at that amount. There are some rules.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

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. OK, you would own 0.25% of the stock. Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

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

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. Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

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

ithacaVC

JANUARY 24, 2013

Let’s assume the following: Common Stock outstanding: 3,400,000 shares owned by the founders. 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). So, $3mm/(3,400,000+500,000) = $.7692

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

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 ] The final thing founders want is to be able to sell some oftheir own stock in later rounds.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

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. Each type and series of stock (Common, Series A, Series B, etc.)

Cap Table 49

Cap Table Finance Option Pool Warrant 49

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. It there is only one class of stock, the same as the founders, and the appraisal of the single class of shares yields, say $2.00 a share, then options must be priced at that amount.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

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

Professor VC

JANUARY 17, 2008

One of the panelists mentioned that they have gotten very valuation sensitive (nothing wrong with that) and like to purchase preferred stock rather than invest in convertible notes. 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.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

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. Startup Equity For Employees.

Equity 56

Equity Employee Vesting Preferred Stock 56

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 link] boris Sorry to be oblique!

Employee 41

Employee Founder Salary Equity 41