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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

Often difficult to get, the first engineer sets the tone for the rest of the development team. In exchange, the engineer is likely offered the promise that his or her option shares will one day turn into big money. Startup employees are granted common shares out of something called an option pool.

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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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The Future of Startup Funding

www.paulgraham.com

If we assumethe average startup runs for 6 years and a partner can bear to beon 12 boards at once, then a VC fund can do 2 series A deals perpartner per year. Then the startup and the lead wouldcooperate to find the rest. If the startupcant raise the rest, the lead is out too. The stickingpoint is board seats.

Startup 93
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How to Raise Money as a First Time Founder

The Next Web

Consult/freelance to pay off your expenses and leave the rest of your time for working on your startup. You’ll hear terminology getting bandied about left and right about things like convertible notes, capped vs. uncapped, stock option pools, board observer rights, maturity dates, priced equity. Cut expenses ruthlessly.

Founder 142
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The Equity Equation

venturehacks.com

” Read the rest of The Equity Equation first; it is great. The top firms are mainly in the business of making money for their limited partners by picking the startups that are going to succeed with or without their value add. The Option Pool Shuffle. We have some additional thoughts. As usual. =). Summary: 1.

Equity 40