keen.io

FEBRUARY 5, 2013

For example: Don’t accept equity compensation (stock shares) without knowing the percentage of the company you’ll own. To begin answering this question, I started on a quest to understand startup financing. From there, I began googling things like “first employee startup equity” and “startup offer negotiation.” Me: “Cool.

Salary 50

Salary Equity Startup San Francisco 50

Up and Running

SEPTEMBER 20, 2021

And as the company grows, it brings on new people and may decide to issue stock options to attract new staff and funding from investors. This is all incorporated into a document called a Cap Table. . A cap table will help you in the strategic management of business decisions. What is a cap table?

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Altgate

JUNE 25, 2012

—————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Thanks to that one decision, he owns nearly four million shares of stock, worth in excess of $100 million. Re-posted from post co-authored with Prof.

Equity 44

Equity Vesting Cap Table Technical Review 44

ithacaVC

SEPTEMBER 10, 2012

But here is one that I want to focus on in this post: “Can I ask for undiluted stock (non dilution clause)?” I am not even sure what “undiluted stock” is, but safe to say the person (I will call him Exec X) meant stock that his equity would not be dilutable in terms of ownership.

Dilution 53

Dilution Employee Cap Table Stock 53

Austin Startup

AUGUST 20, 2017

Your Cap Table is something that deserves constant care and attention. Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. Messy cap tables can come back to haunt you when you do a financing or sell the company.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Altgate

AUGUST 25, 2012

—————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Thanks to that one decision, he owns nearly four million shares of stock, worth in excess of $100 million. Re-posted from post co-authored with Prof.

Equity 28

Equity Vesting Cap Table Technical Review 28

genylabs.typepad.com

SEPTEMBER 24, 2011

I often take stock in lieu of cash. I have a file drawer full of worthless stock certificates and I continue to add to it. Not all start-up stock is created equally. what kind of stock you are getting. where your stock sits in the liquidity preference stack. what kind of stock you are getting. Good point.

Equity 40

Equity Technical Review San Jose Stock 40

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers.

Equity 56

Equity Employee Vesting Preferred Stock 56

Hunter Walker

AUGUST 26, 2022

Box had just 50 employees and was hitting an inflection point when I joined in 2009, so there was far more work to do than people to do it. Our timing was brutal: the Box S-1 coincided with the start of a major market correction for SaaS stocks, and our newly revealed financials made us a natural poster company for that change in sentiment.

IPO 91

IPO Cofounder Early Stage Portfolio 91

Both Sides of the Table

FEBRUARY 8, 2016

We do this in our consumer lives with everything ranging from housing purchases to public stocks. Employees hate them because it’s hard to reset expectations that their stock is worth less. The terrible consequence is that some great companies struggle to get financed. The best deals will continue to get financed.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Dilution 150

Berkonomics

MARCH 7, 2019

When you seek professional investors, whether organized angels or venture capitalists, one of the early questions you are asked is “How have you financed the business so far?” To compound the problem, often stock is issued by the entrepreneur without filing any report of such issuance with the state of issue. Crowd sourcing as a tool.

Cap Table 61

Cap Table SEC Private Placement Accredited Investor 61

The Next Web

OCTOBER 7, 2013

From the perspective of my outside friends, why are employees that so clearly impact the growth trajectory of a company look like they’re getting screwed? Cap tables sound intimidating. Startup employees are granted common shares out of something called an option pool. I’ll take that in singles, please.

Engineer 129

Engineer Dilution Option Pool Vesting 129

David Teten

DECEMBER 3, 2019

Point Nine Capital uses 15Five for continuous employee feedback. 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.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Hunter Walker

SEPTEMBER 29, 2022

As more growth and crossover investors came into the startup ecosystem they were often eager to put capital to work and happy to consolidate their positions with common or preferred shares from early employees, founders and previous investors. We’re aligned with the founders and the rest of the cap table until we aren’t.

Venture Capital 122

Venture Capital Cap Table LP Equity 122

blog.simeonov.com

FEBRUARY 22, 2010

This can be a convenient shortcut to separate someone’s status (founder) from their role (employee or contractor or advisor, etc.) The number of separate documents may vary but they fall into two categories: Those related to equity, typically a restricted stock purchase agreement (RSPA) and associated escrow and other agreements.

Founder 44

Founder Vesting Agile Startup 44

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. The same thing happened to many Internet stocks.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

venturehacks.com

MARCH 21, 2008

You get money, save stock, and amplify the advisor’s social proof in the process. 0.25% of a company’s post-Series A stock. Super advisors The super advisor can get as much stock as a board member: 1%-2% of a company’s post-Series A stock. Or they bring you a handful of great employees.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

venturehacks.com

OCTOBER 21, 2010

You explain that the company currently has 6M shares outstanding so the investors must be valuing the company’s stock at $1.33/share: Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# share to $1.00/share:

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Startup Lessons Learned

MAY 4, 2021

Every company I meet these days is grappling with this topic, from ESG to employee activism, to so much more. And of course, we started putting together a plan about how we might evacuate or get out of the office for day-to-day work and how we might start to provide services to employees. Highlights from the Show: What is Coinbase? (:33)

IPO 113

IPO Cofounder Technical Review Government 113

abovethecrowd.com

JUNE 2, 2021

This “gain” ($34B last year alone) is a result of a direct wealth-transfer to these individuals FROM the previous owners of the company — founders, executives, employees, and venture investors. The founders, the CEO, the CFO, the executives, the employees, and the venture investors. Party B: The investment banks. So if 20.5X

IPO 82

IPO Customer Matching Silicon Valley 82