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Equity for Early Employees in Early Stage Startups

SoCal CTO

Unlike the founders, the employees have to wait until their grants vest, working at a company no longer of their choosing for two years. Stock vests for 4 years. Wilson Sonsini and DFJ Gotham Ventures : The Option Pool Shuffle : Title Range (%) CEO 5 – 10 COO 2 – 5 VP 1 – 2 Independent Board Member 1 Director 0.4 – 1.25

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Should You Share Equity with Consultants?

www.inc.com

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.

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Is it Time for You to Earn or to Learn?

Both Sides of the Table

If you’re thinking about joining as the director of marketing, product management manager, senior architect, international business development lead, etc. Stock vests for 4 years. Or you have to hit the lottery and be an early player middle management player at Google, Facebook, MySpace or Twitter. Wait a second.

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Changing Equity Structures for Early Startup Employees

www.instigatorblog.com

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.

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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. share to $1.00/share:

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

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.

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Startup Equity For Employees

www.payne.org

4 Vesting. 5 Stock vs Options. You usually dont get all of your stock up front; it vests over a period of time, starting from your first day at work. Vesting parameters vary widely, but a classic model is 4 year vesting, a 1 year "cliff", and then monthly or quarterly vesting after that. From Payne.org Wiki.

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