The Next Web

JUNE 15, 2012

For starters, people tend to grossly underestimate just how much record keeping is involved. Any decision to hand out stock or stock options should be made within the big picture context of your company’s valuation and the total number of shares you’ll be granting. Imagine if you grant stock options to a handful of consultants.

Equity 116

Equity Stock Options Vesting Stock 116

Both Sides of the Table

JUNE 5, 2015

In the old days VCs funded off of a “pre-money” valuation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. How much is in the option pool? Why do investors care about this?

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

David Teten

DECEMBER 3, 2019

But, most of use raise capital and source deals the same way people looked for dates 20 years ago: by networking at conferences (or bars). . LeadIQ Scout provides access to peoples’ email addresses as you browse websites. When I met my now-wife, I realized that any technology that can find me a spouse is a killer app. 7) Negotiate .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ReadWriteStart

SEPTEMBER 2, 2011

So in your first few rounds, try to raise money from as few people as possible and make sure they really will help. Including things like liquidation preferences impact both future rounds and ultimate liquidity to why VCs ask to expand an option pool before investing as part of their term sheet.

Cap Table 125

Cap Table Term Sheet Liquidation Preference Technical Review 125

www.paulgraham.com

OCTOBER 23, 2010

VCs are much morelikely to make angel-sized investments than they were a year ago.And meanwhile the past year has seen a dramatic increase in a newtype of investor: the super-angel, who operates like an angel, butusing other peoples money, like a VC. there should be a lot more people investing tens or hundreds ofthousands than millions. [

Startup 93

Startup Valuation Non-Compete Deal Flow 93

www.paulgraham.com

APRIL 28, 2010

By which I meannot that it has to make something physical, but that it has to haveone thing it sells to many people, rather than doing custom workfor individual clients. Usually itprevents people from starting things, but once you publish somedefinite ambition, it switches directions and starts working inyour favor.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Austin Startup

JANUARY 25, 2020

The Foursquare guys came all the way from NYC and literally drew squares on the ground and invited people to play the actual school playground foursquare game while showing people what their app does. I hated going into bars and engaging with people there in the evenings. How did I get the gig? There’s something here!

Delaware 62

Delaware SEC New York City New York 62

Both Sides of the Table

NOVEMBER 4, 2009

Yet I often hear people asking about these types of opportunities express their questions to me whether I think this company is going to be a big hit. It’s clear to me that many people confuse learn with earn. Simple math would have solved that but people rarely do the calculations or think about it. It was 1999.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

The Equity Kicker

OCTOBER 8, 2014

In our case we set out to be founder friendly and wrote a termsheet that has the minimal set of investor protections that we can get away with as an institutional investor – we need some protections because we have a duty of care to the people who invest in our fund.

Founder Vesting 92

Founder Vesting Vesting Option Pool Institutional Investors 92

www.readwriteweb.com

DECEMBER 29, 2011

So in your first few funding rounds, try to raise money from as few people as possible and make sure they really will help. This includes things like how liquidation preferences impact future rounds and ultimate liquidity, to why VCs ask to expand an option pool before investing as part of their term sheet.

Cap Table 47

Cap Table Term Sheet Liquidation Preference Technical Review 47

The Equity Kicker

OCTOBER 8, 2014

In our case we set out to be founder friendly and wrote a termsheet that has the minimal set of investor protections that we can get away with as an institutional investor – we need some protections because we have a duty of care to the people who invest in our fund.

Founder Vesting 68

Founder Vesting Vesting Option Pool Institutional Investors 68

www.inc.com

SEPTEMBER 24, 2011

Nevertheless, he finds that equity is generally "a great tool to use before you can line up enough cash to pay people.". As you think about how much equity to offer, have a reasonable valuation in mind thats been determined using professional advice. But sharing equity can have pitfalls, too.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

thinkspace.com

SEPTEMBER 7, 2012

Sometimes when people start up a company they make decision to divide up the equity evenly because it’s “fair” Demmler’s approach is a bit different in that the calculator provides a way to quantify the elements of the decision making process, and that it appears to be logical and fair. Number of shares: meaningless.

Equity 62

Equity Employee Founder CTO Hire 62

venturehacks.com

MARCH 21, 2008

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. Why should I pay advisors?

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

Scott Edward Walker

AUGUST 31, 2011

They are often dealing with people with very limited or no business experience. These people need help in defining and pursuing their business goals. At what valuation and on what terms? they usually play a much larger role in the businesses being started. How should the founders divide the initial stock ownership?

Silicon Valley 45

Silicon Valley Term Sheet Liquidation Preference Redemption 45

The Next Web

AUGUST 14, 2013

Without further ado, here’s my ultimate guide to raising money as a first-time founder – leaning heavily on the experience and advice I’ve learned from other smart people who understand raising money much better than me. How to Convince Investors. Rather, the best way to convince an investor to give you money is to actually be investable.

Founder 142

Founder Incubator Cofounder Accredited Investor 142

www.paulgraham.com

OCTOBER 23, 2010

Angels are individualrich people who invest small amounts of their own money, while VCsare employees of funds that invest large amounts of other peoples. But like VCs, they invest other peoples money.This allows them to invest larger amounts than angels: a typicalsuper-angel investment is currently about $100k.

Valuation 92

Valuation Stock Partner Founder 92

Both Sides of the Table

AUGUST 17, 2009

Many times the answer is ‘no.&# The problem is that you’re opening yourself up to a claim by one of these people that you somehow stole their ideas. This is advice that I give people all the time. I’m reluctant to put it into writing because people get so passionate about this issue and many disagree.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

venturehacks.com

SEPTEMBER 22, 2011

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. You have to pay market rates regardless of the equity equation.

Equity 40

Equity Cap Table Valuation RSS 40

thestartuplawyer.com

FEBRUARY 24, 2010

Can I remain the sole founder even though I must get people 'in" far, far more skilled and qualified than myself. Can I remain the sole founder even though I must get people 'in" far, far more skilled and qualified than myself. He obviously never launched a startup and got shafted by a co-founder.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

www.startupnorth.ca

OCTOBER 23, 2010

Not every one can be a founder, i.e., can you imagine trying to start a company with 10,000 people? 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? It’s just unfeasible. More equity?

Employee 41

Employee Founder Salary Equity 41