VC Cafe

OCTOBER 16, 2010

Attend networking events, trade shows, participate on blogs, @ people on Twitter and hit people up on LinkedIN offering to shout them coffee’s in return for their time. . Surround yourself with people that either fit your user profile, or are actively involved in the industry you’re about to enter.

Option Pool 88

Option Pool Analytics LLC Startup 88

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. What’s everyone else getting?

Engineer 129

Engineer Dilution Option Pool Vesting 129

Business Plan Blog

SEPTEMBER 18, 2012

Most sophisticated investors will require a stock option pool upon investment, and a company that fails to reserve a sufficient amount of equity up-front runs the risk of being forced to establish a pool at a later date that may dilute the founders’ ownership. Whatever the percentage, it pays to plan ahead.

Stock Options 61

Stock Options Stock Option Pool Dilution 61

Professor VC

JANUARY 17, 2008

At a $1 million, pre-money, with an investment of $500K, that would leave 67% of the company for the founders and initial option pool. Keeping this simple with no employee option pool and just founders and investors, investors would hold 60% at this point (20% for angels and 40% for VCs) and founders would have 40%.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Rob Go

AUGUST 29, 2016

Founders also had to do a little math on the new option pool to really understand what their ownership would be post investment, since it was typically taken out of the company pre-money. Most term sheets talked about the valuation in these terms, and you added the dollars invested to get a post-money valuation.

Post-Money Valuation 52

Post-Money Valuation Valuation Cap Table Term Sheet 52

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. Sorry, your blog cannot share posts by email. Take a look at the numbers: Pre-Money. Post-Money. Series A. -. Post-Money. Series A. -. Warrants. -. 10,000,000.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

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. He just wrote an insightful post about giving equity to early startup employees, saying something I’ve been meaning to blog about myself: 0.5-1% They need a shot at a pot of gold.

Equity 41

Equity Employee Startup Vesting 41

venturehacks.com

DECEMBER 9, 2012

I wrote a number of articles on my blog about advisors. I am inclined to list the VentureHacks blog as an advisor to my next startup!) [.]. The Option Pool Shuffle. *motivating* advisors beyond compensation or without compensation to help with specific challenges you are having. bob pasker. // Feb 21, 2008 at 10:48 am.

Advisory Board 50

Advisory Board Cap Table RSS Cofounder 50

Both Sides of the Table

AUGUST 17, 2009

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. Founder vesting.

Founder Vesting 365

Founder Vesting Vesting Intellectual Property Stock Options 365

Tim Keane

JANUARY 12, 2010

Subscribe to this blogs feed. Seen from a 35,000-foot vantage point, term-sheets and valuations are a method of assessing risk and making mutual promises about assuming various risk components. Bootstrapping. Creating The Opportunity. Funding startups. Investor Relationships. Managing Company Growth. Startup ideas. The Entrepreneurial Mind.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

thestartuplawyer.com

FEBRUARY 24, 2010

so glad we found this blog [too bad it was a little too late]. BTW, I tried visiting your blog but it crashes my Safari browser (Mac version) each time. I wrote a previous blog article regarding startup co-founders. [.] North says: June 9, 2009 at 8:50 pm Thanks for this whole blog its the best I have found.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

www.startupnorth.ca

OCTOBER 23, 2010

The Adventure of a Lifetime 17 Pithy Insights for Startup Founders 17 Pithy Insights for Startup Employees Venture Hacks > Hiring Venture Hacks > Employees Venture Hacks > The Option Pool Shuffle Paul Graham > The Equity Equation [link] boris It's important to note that those options grants are AFTER a Series A funding.

Employee 41

Employee Founder Salary Equity 41

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. If you like it, check out his blog and Twitter. Grow VC > Blog - Jan 2, 2010 [.] Coincidence? Learn more.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

venturehacks.com

SEPTEMBER 22, 2011

The Option Pool Shuffle. Our Personal Blogs. founders@venturehacks.com (Help requests from paying customers are answered within 24 hours.). Popular Posts. How to pick a co-founder. How to make a cap table.

Equity 40

Equity Cap Table Valuation RSS 40

David Teten

DECEMBER 3, 2019

See their blog post on multiples.). 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. Modano standardizes Excel models to improve comparability and reduce error rates.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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). Strike price of options: meaningless.

Equity 62

Equity Employee Founder CTO Hire 62

www.payne.org

SEPTEMBER 22, 2011

Companies allocate a pool of stock (usually called the Incentive Stock Option pool, or ISO pool) to grant to employees. The pool size is set during the funding negotiations with the founders and investors, and is typically sized to cover the first batch of hires up to the next round of funding. Navigation.

Equity 56

Equity Employee Vesting Preferred Stock 56

Scott Edward Walker

NOVEMBER 26, 2017

From a practical perspective, this means getting actively involved in your local tech community, regularly attending industry events and conferences, writing blog posts/articles, integrating yourself into communities on social networks and, of course, doing outstanding work as an employee (to develop a great reputation).

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

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.

Advisory Board 44

Advisory Board Cap Table Vesting Recapitalization 44

Business Plan Blog

DECEMBER 26, 2013

A capitalization table showing the post-investment ownership structure of the business to include founders, option pool and investors in the current round. Professional fees and costs. Exclusivity period and timescales. -

Angel Investor 51

Angel Investor Due Diligence Pre-Money Valuation Angel Groups 51

crowdSPRING Blog

NOVEMBER 15, 2013

Model Equity Calculator for Founders with Option Pool Expansion – crowdspring.co/1fwUdsA. 5 Examples of Companies Innovating with Crowdsourcing | InnoCentive Blog – crowdspring.co/18pmD2x. Free Resources for Creating a Flat Design | Vandelay Design Blog – crowdspring.co/1eEjALw. Instant unicorn?

Social Media 93

Social Media Small Business Design Media 93

The Next Web

AUGUST 14, 2013

This is a guest post by Wade Foster , co-founder and CEO of Zapier, which originally appeared on his blog. You can follow Wade’s writing on his site or the Zapier blog. In September of 2012, Zapier closed our seed investment round of $1.2MM. This is certainly most confusing part about raising money – at least it was for me.

Founder 142

Founder Incubator Cofounder Missouri 142