techcrunch.com

FEBRUARY 25, 2010

You could make the same argument about acquisitions and option pools. This is probably why investors’ case for a company to sell early f ocuses exclusively on the founder : in most early-stage acquisitions, the liquidation preferences and deal-sweeteners only work for investors and founders.

Liquidation Preference 63

Liquidation Preference Founder Option Pool Acquisition 63

Berkonomics

DECEMBER 6, 2010

It is the same logic larger corporations use when deciding whether to use cash or stock to make an acquisition. If the stock is highly priced, corporations may be quite willing to use their shares as currency for acquisitions. Such an analysis is in the service of all shareholders.

Stock Options 61

Stock Options Stock Warrant Common Stock 61

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. Are they especially acquisitive? N: exit size.

Engineer 129

Engineer Dilution Option Pool Vesting 129

www.mattbartus.com

DECEMBER 9, 2012

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. Option Pool. and the acquisition price. Take a look at the numbers: Pre-Money. Post-Money. Series A. -. Post-Money. Series A. -. Warrants. -. 10,000,000. 13,333,333.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

www.paulgraham.com

OCTOBER 23, 2010

Startups are increasinglyraising money on convertible notes, and convertible notes have notvaluations but at most valuation caps : caps on what theeffective valuation will be when the debt converts to equity (in alater round, or upon acquisition if that happens first). 13 ]Im not saying option pools themselves will go away.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

Up and Running

SEPTEMBER 20, 2021

A convertible note is like a loan, but this amount can be converted into company equity later on, usually during a liquidation event, like the acquisition of the company. Total share ownership is the sum of the common stock, stock options, preferred stock, and any other stock category for a single individual. Convertible notes.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

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.

Equity 62

Equity Stock Options Vesting Early Stage 62

www.payne.org

SEPTEMBER 22, 2011

Common stockholders should care about the preference, because that preference is "ahead" of the commons in any acquisition outcome. Some vesting plans may accelerate vesting for certain events, such as an acquisition. Stock vs Options. That means that theres a total of $5m of Series A preference in the company.

Equity 56

Equity Employee Vesting Preferred Stock 56

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. I’ve seen other VCs use Bridge to more efficiently make and track introductions. .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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.

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.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

www.paulgraham.com

APRIL 28, 2010

Its thesame with acquisitions. Theyleave 20% as an options pool for later employees (but they setthings up so that they can issue this stock to themselves if theyget bought early and most is still unissued), and the three founderseach get 25%. So after this the option pool is down to 13.7%). [

Technical Review 76

Technical Review Startup Software Review Vesting 76

Scott Edward Walker

NOVEMBER 26, 2017

It’s the same with acquisitions. If an investor knows you have other investors lined up, he’ll be a lot more eager to close — and not just because he’ll worry about losing the deal, but because if other investors are interested, you must be worth investing in.

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

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

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. This provision allows these select individuals to perhaps profit handsomely in an acquisition by being able to exercise their options in full at the time of sale.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

www.paulgraham.com

OCTOBER 23, 2010

Meaning that when the noteconverts into stock (in a later round, or upon acquisition), theinvestors in that round will get.6 5 ]In a series A round, you usually have to give up more thanthe actual amount of stock the VCs buy, because they insist youdilute yourselves to set aside an "option pool" as well.

Valuation 92

Valuation Stock Partner Founder 92