Up and Running

SEPTEMBER 19, 2017

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. A deal was reached after two phone conversations and within three weeks contracts were signed and the investment was funded. Capital investments are like gasoline on a startup business’s metaphorical fire.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Up and Running

SEPTEMBER 20, 2021

Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors. This can be helpful when you are hiring a COO for the company, and the candidate asks to get percentage ownership in the company. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Up and Running

DECEMBER 1, 2015

Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. This type of stock is typically given to founders and early employees with the stock value is near zero. See Also: 10 Tips for Dealing With Startup Stock Options.

Equity 60

Equity Employee Stock Options Vesting 60

Up and Running

AUGUST 17, 2015

C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on). During our fundraising conversations, I’ve been constantly amazed by the percent of people I’ve spoken to in the venture capital community that have MBAs.

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

venturehacks.com

MARCH 21, 2008

If an advisor can uncork a million dollars of your company’s latent value with 15 minutes of conversation or a single introduction, you should pay him appropriately. 0.25% of a company’s post-Series A stock. Advisory shares are normal common stock. Normal advisors The normal advisor gets 0.1%-0.25%

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

keen.io

FEBRUARY 5, 2013

On the other hand, this was new territory for the founders as well; they had zero experience making offers to new startup hires. As a founder, his salary was lower than any of those offered to the new hires; he also had substantially more equity. They decided to give this form of stock to all of the early employees.

Salary 50

Salary Equity Startup Cap Table 50

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. This clearly illustrates the power of a conversion discount. I have posted on this previously.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67