Both Sides of the Table

SEPTEMBER 18, 2014

Less than you’ll probably grant your most junior employees in stock options? If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. Stock Option plans. Him: Not so good. Obviously he’d be pissed off.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

The Startup Magazine

JUNE 1, 2023

As a founder, ask yourself – does your business actually warrant VC funding? Returning money or exploring a pivot that you truly believe in are the only options. After all, you’ve likely given your employees stock options which make them part-time business owners as well. And in times like this, give them more.

Early Stage 110

Early Stage Los Angeles Silicon Valley Cofounder 110

Gust

JULY 23, 2012

A: If you donate shares of stock, you take a tax deduction at the time of the donation equivalent to the fair market value of the stock at the time of the donation. However, if you donate stock options or warrants, you get a tax deduction when the stock options or warrants are exercised.

Stock 114

Stock Capital Gains Warrant Stock Options 114

The Next Web

OCTOBER 8, 2015

stock, options, warrants). Sometimes that motivation comes in the form of cash compensation (e.g., lucrative sales commission plan, profit share plan), and sometimes that comes in the form of equity or equity linked incentives (e.g., You can… This story continues at The Next Web.

Equity 60

Equity Employee Warrant Stock Options 60

Berkonomics

DECEMBER 7, 2017

And some will willingly work for stock options, an amount to be negotiated based upon time spent and stage of corporate development. Some charge by the hour, making themself available much as an attorney, keeping track of hours spent on phone calls and emails with you.

Warrant 97

Warrant Stock Options Vesting Equity 97

Gust

SEPTEMBER 17, 2014

Less than you’ll probably grant your most junior employees in stock options? If you want to give them a 50% discount offer them $1 of common-stock warrants (no liquidation preference) for every $1 of stock they buy. Stock Option plans. Him: Not so good. Obviously he’d be pissed off. Me: I know.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

MAY 23, 2010

the loan converts at 15-20% discout to the new money coming in) or your investor will get “warrant coverage&# which is similar to an employee stock option in that it gives the investor the right but not the obligation to invest in your company in the future at a defined priced. But piers are often counter productive.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Berkonomics

NOVEMBER 7, 2019

Semi-annual reviews are excellent, especially for companies that offer stock options as well as merit increases for outstanding performance. With such reviews, option grants could be tied to one review and merit increases to the other. Two carrots in a year are better than one for obtaining desired outcomes.

Warrant 48

Warrant Metrics Stock Options Employee 48

Both Sides of the Table

JUNE 28, 2011

The trend of funding anything from the first $25k to funding $50 million at a billion+ valuation is unlikely to last as the skills and style to be effective at all stages are diverse enough to warrant focus. I will argue that LPs who invest in VC funds will also need to adjust a bit as well. At least in the consumer & business web.

Venture Capital 334

Venture Capital Software PHP Open Source 334

Gust

DECEMBER 8, 2011

From choosing a legal entity or jurisdiction to properly documenting IP assignments and stock issuances to complying with securities laws and avoiding potentially enormous tax penalties in the future, there is plenty here to warrant consulting a professional. Caveat entrepreneur !

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

VC Cafe

SEPTEMBER 6, 2011

Deal structure – I could write a full post just on this, but some aspects that were brought up are the need to agree on a reasonable valuation, what investment vehicles are used (convertible debt vs stock, options and warrants and other non-dilutive mechanisms).

Startup 133

Startup Cofounder Warrant Stock Options 133

ithacaVC

SEPTEMBER 4, 2011

Note how the new CTO Praveena implicitly negotiated to get her 15% founders shares after creation of the stock option pool. This is significant because Jane and Dick took all the dilution from the option pool creation. Each type and series of stock (Common, Series A, Series B, etc.)

Cap Table 49

Cap Table Finance Option Pool Warrant 49

Berkonomics

JULY 3, 2010

And some will willingly work for stock options, an amount to be negotiated based upon time spent and stage of corporate development. Some charge by the hour, making themsef available much as an attorney, keeping track of hours spent on phone calls and emails with you.

Warrant 71

Warrant Stock Options Vesting Equity 71

ReadWriteStart

JANUARY 28, 2022

These characteristics, comparable to those found in the fixed income market, can convert into common stock, call clauses, and other features. Warrants are a kind of equity that are often attached to a corporate bond issuance or preferred stock to make the transaction more appealing to investors. Equity for Co-founders.

Valuation 108

Valuation Equity Warrant Common Stock 108

venturehacks.com

OCTOBER 21, 2010

What if the founder already included an option pool in the existing shares outstanding? For example, assume 5M shares outstanding out of which 20% (or 1M shares) is reserved for employee stock options. Let us further assume that the pre-money valuation is agreed at $5M, can we claim effective share price is $5M/5M or $1/share?

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Board Effect

MAY 10, 2019

Two of the most popular equity securities found on a cap table are common and preferred stock. Cap tables may also include derivatives such as warrants and options. This summary often includes the number of shares reserved for employee stock options and other such incentive programs.

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40