www.inc.com

SEPTEMBER 24, 2011

If youre offering the consultant stock options, youll also want to take into consideration what the exercise price is going to be and how long the options will be outstanding. Create an options pool, if nothing more than in your mind, so you have some parameters to work within," Durkin says.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

The Equity Kicker

OCTOBER 8, 2014

We couldn’t use them as is because they don’t have enough detail on key items, like investor protections and founder vesting. Since writing that termsheet we have used it on around four deals and shared it with a few more companies we have had discussions with.

Founder Vesting 68

Founder Vesting Vesting Option Pool Institutional Investors 68

Early Growth Financial Services

DECEMBER 4, 2014

It could be the size of the option pool, or maybe the provisions around reverse vesting. I discussed Change of Control, Reverse Vesting, and Liquidation Preferences in … Continue reading → Equity / Debt / Venture Funding'

Term Sheet 51

Term Sheet Liquidation Preference Vesting Option Pool 51

Agile VC

DECEMBER 4, 2014

You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

Hippoland

APRIL 10, 2016

But, Ada wants to split the equity 50% her, 20% Bob and 20% me with a 10% option pool. First off, whatever you decide, you should implement vesting. Standard vesting practices in the Silicon Valley at this time of writing are 4 year vesting with a 1 year cliff. But, we’re going to be doing all the work!

Cofounder 48

Cofounder Cap Table Equity Vesting 48

Business Plan Blog

NOVEMBER 20, 2013

To ensure that the co-founder works out and sticks around for the 3-5 years that it takes consider vesting there shares over 3-5 years. You also need to think about how much equity you want to have set aside and available for your future employees in your option pool. Stage 3: Friends and Family Funding. You need funding.

Equity 61

Equity Option Pool Cofounder Vesting 61

ithacaVC

DECEMBER 13, 2013

They are typically pretty simple: (i) shares owned by founders and (ii) shares authorized for issuance in a stock option pool, some of which may be issued to employees already and some of which will be available for future issuance. And don’t forget that the options granted would come out of the available option pool.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

The Next Web

OCTOBER 7, 2013

Startup employees are granted common shares out of something called an option pool. It is typical for employees to vest their options over four years with a one year cliff, which means a new hire must stay on the company for at least one year to see any shares. How do you feel about that number?

Engineer 129

Engineer Dilution Option Pool Vesting 129

Both Sides of the Table

NOVEMBER 4, 2009

Stock vests for 4 years. When we next spoke he had found out that the CEO had about 5% and there was no management option pool in place. You get 1%, you sell for $150 million and it’s in 3 years (e.g. you won the lottery). That’s an after-tax gain of $287,500 / year for 2 years. Wait a second. Sorry bud.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Genuine VC

FEBRUARY 28, 2011

On the equity side, each startup has a fixed option pool from which they’re drawing. I’d push on both but then also bring up other terms (vesting acceleration, severance) of employment which can be much more impactful in the long-term upside/downside scenarios.

Startup 121

Startup Equity Vesting Salary 121

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. share to $1.00/share:

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Both Sides of the Table

AUGUST 17, 2009

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. But these people seldom make retirement money from the stock options on these companies. Founder vesting. Yesterday I wrote a blog posting on founder vesting (see here ).

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

www.instigatorblog.com

OCTOBER 23, 2010

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. Immediately makes them more like owners than employees, and doesn't have the same vesting timeline.

Equity 41

Equity Employee Startup Vesting 41

techcrunch.com

FEBRUARY 25, 2010

You could make the same argument about acquisitions and option pools. Unlike the founders, the employees have to wait until their grants vest, working at a company no longer of their choosing for two years. The remaining 95 employees split 7%, each earning $27,000. It is worth $250 million at the time of a public offering.

Liquidation Preference 63

Liquidation Preference Founder Option Pool Acquisition 63

Scott Edward Walker

AUGUST 31, 2011

Conclusion There is too much at stake for entrepreneurs not to be represented by a smart, unbiased lawyer, who has no vested interest in the closing of a proposed financing. This is not to suggest that there’s anything nefarious or unethical going on; it’s just common sense.

Silicon Valley 45

Silicon Valley Term Sheet Liquidation Preference Redemption 45

www.payne.org

SEPTEMBER 22, 2011

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.

Equity 56

Equity Employee Vesting Preferred Stock 56

Tim Keane

JANUARY 12, 2010

These include: ·       Vesting of Founder Stock. Especially in situations where the founders have a large position and are key employees, it is not uncommon for investors to request that they agree to have some portion of their holdings vest on a schedule.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

The Next Web

JUNE 15, 2012

Seen in this light, it seems harmless enough to dole out some paper shares or options to get critical services that will take your business to the next level. And giving equity as compensation can help build loyalty among contractors and consultants, as they now have a truly vested interest in your company’s success.

Equity 116

Equity Stock Options Vesting Stock 116

Berkonomics

NOVEMBER 23, 2023

Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%. That size of grant would take much or most of the option pool. All other grants usually are much lower, allowing for the typical 15% pool to last for quite a while in most companies. How about “vesting” shares over time ?

Equity 62

Equity Stock Options Vesting Early Stage 62

www.paulgraham.com

APRIL 28, 2010

Another difference with large investments is that the founders areusually required to accept "vesting"—to surrender their stock andearn it back over the next 4-5 years. vesting would in that situation force founders to toe the line. Some investors might expect the founders to accept vesting for asum this size, and others wouldnt.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Up and Running

SEPTEMBER 20, 2021

Total share ownership is the sum of the common stock, stock options, preferred stock, and any other stock category for a single individual. Here you can see that the founders own most of the shares at 67.7%, then the ESOP (employee stock option pool) at 12.31 Outline your plans for future employee stock option pools.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

thestartuplawyer.com

FEBRUARY 24, 2010

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. He obviously never launched a startup and got shafted by a co-founder. Leave a Reply Click here to cancel reply.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Berkonomics

SEPTEMBER 28, 2017

Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%. That size of grant would take much or most of the option pool. All other grants usually are much lower, allowing for the typical 15% pool to last for quite a while in most companies. Any other important considerations?

Early Stage 102

Early Stage Equity Stock Options Vesting 102

thinkspace.com

SEPTEMBER 7, 2012

Chris Dixon wrote a blog post about “ The one number you should know about your equity grant “ The one number you should know about your equity grant is the percent of the company you are being granted (in options, shares, whatever – it doesn’t matter – just the % matters). Percent of the outstanding option pool: meaningless.

Equity 62

Equity Employee Founder CTO Hire 62

venturehacks.com

SEPTEMBER 22, 2011

Ask the Attorney” – Founder Vesting. The Option Pool Shuffle. Our Spreadsheet. Check out the video tour. Charles River Ventures : We back people who want to change the world. Supporter Posts. Scott Edward Walker. Popular Posts. How to pick a co-founder. How to make a cap table. We don't pay you to work here. Part 2: Deck.

Equity 40

Equity Cap Table Valuation RSS 40

David Teten

DECEMBER 3, 2019

The Long Term Stock Exchange is building out a set of tools for founders for managing their cap tables, 409A valuations, cash on hand, options pool, investor relations, etc. Vested helps employees and employers calculate exactly how much their options are worth, and when and how to monetize.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

venturehacks.com

FEBRUARY 24, 2010

Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Build in founder vesting (a.k.a. the “Pre-Nup&# ) to keep the breakup from getting messy. Learn more.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

venturehacks.com

MARCH 21, 2008

Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options. The options typically vest monthly over 1-2 years with 100% single-trigger acceleration and no cliff. Many advisors want options they can exercise immediately —that’s fine.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

Berkonomics

MAY 12, 2010

Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%. That size of grant would take much or most of the option pool. We call these “trigger” provisions, in which selected options negotiated for a select group of senior managers, fully vest to 100% upon any change of control.

Early Stage 85

Early Stage Equity Stock Options Vesting 85