www.paulgraham.com

OCTOBER 23, 2010

Youdnegotiate a round size and valuation with the lead, whod supplysome but not all of the money. Then the startup and the lead wouldcooperate to find the rest. Standardized paperwork will do away with the need tonegotiate anything except the valuation, and that will get easiertoo. Butthere may not have to be just one valuation.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

The Startup Lawyer

JANUARY 10, 2011

While progressive discussions with an investor about the investment are fine and most revolve around pre-diligence matters, sometimes these discussions shift towards the pre-money valuation and investment amount. And this has potential negative consequences for the startup.

Term Sheet 64

Term Sheet Pre-Money Valuation Liquidation Preference Option Pool 64

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.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

The Next Web

OCTOBER 7, 2013

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.

Engineer 129

Engineer Dilution Option Pool Vesting 129

venturehacks.com

SEPTEMBER 22, 2011

” Read the rest of The Equity Equation first; it is great. Offers from top-tier firms increase your valuation. Offers from top-tier firms increase your valuation. But overall, an offer from a top-tier firm increases your valuation. Top-tier firms try to avoid increasing your valuation when they make an offer.

Equity 40

Equity Cap Table Valuation RSS 40

venturehacks.com

MARCH 21, 2008

See Part 1 for the rest. Many advisors want options they can exercise immediately —that’s fine. If your company hasn’t raised a Series A, increase the advisor’s equity by roughly 30%-50% to account for dilution from seed investors, Series A investors, option pools, swimming pools, and the like.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

The Next Web

AUGUST 14, 2013

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

Founder Incubator Cofounder Accredited Investor 142