article thumbnail

Using warrants to pump up your VC valuation

www.mattbartus.com

How to pump up your VC valuation. Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. You have a 20% option pool, so you know this will take your ownership down from 80% to 60%, and the VC will get 25%. Option Pool.

Warrant 40
article thumbnail

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.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Equity Equation

venturehacks.com

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. 4 responses so far · Comments RSS. #. SUPPORTED BY.

Equity 40
article thumbnail

Most Common Early Start-up Mistakes

Both Sides of the Table

This is part of my ongoing series “ Start-up Lessons. &# If you want to subscribe to my RSS feed please click here or to get my blog by email click here. Assuming normal valuations at fund raising rounds you’ll be down to 6-12% after you’ve created a stock-option pool and raised capital.

article thumbnail

Founders versus early employees

www.startupnorth.ca

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? I would assume that they are very similar but given the lower valuations and this may change the salary/options mix.

article thumbnail

Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer

thestartuplawyer.com

Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder. Leave a Reply Click here to cancel reply.

article thumbnail

Everything you ever wanted to know about advisors: Part 2.

venturehacks.com

Products Archives @venturehacks Books AngelList About RSS Everything you ever wanted to know about advisors, Part 2 by Nivi on February 27th, 2008 Here are more frequently asked questions about advisors. Many advisors want options they can exercise immediately —that’s fine. Venture Hacks Good advice for startups. Learn more.