www.mattbartus.com

SEPTEMBER 24, 2011

First, you’d probably want them to receive common stock, not preferred stock (which is the likely next round). Matt is a lawyer representing technology companies through all phases of their lifecycle, from pre-incorporation, seed & VC financings, exit transactions and IPOs (read more). [link] mattbartus.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

keen.io

FEBRUARY 5, 2013

To begin answering this question, I started on a quest to understand startup financing. This book was written to help founders negotiate financing with investors, but it really helped me understand Keen’s financial situation, and I highly recommend it to anyone joining a startup. First, I read Venture Deals by Brad Feld.

Salary 50

Salary Equity Startup San Francisco 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. S0, being able to clearly state how many options you want to grant at the time of the financing is KEY.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

Eric Friedman

JUNE 27, 2016

This is the classic “hire people smarter than you” which is harder said than done. A little bit of background first on options: In order to issue options, your company must have a valid 409A valuation setting the fair market value (“FMV”) of a share of common stock. Think about the things you DON’T know.

Equity 98

Equity Vesting Cap Table Common Stock 98

www.payne.org

SEPTEMBER 22, 2011

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. 3 Dilution. 4 Vesting.

Equity 56

Equity Employee Vesting Preferred Stock 56

Both Sides of the Table

SEPTEMBER 5, 2012

Was Paul Graham right in his “high resolution” financing post? valuation and another person funds you with convertible debt at $5m valuation (high resolution financing) and your equity round finally closes at a $10 million valuation. What happens in a sale or acqui-hire? Some thoughts on raising angel money.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

thestartuplawyer.com

FEBRUARY 24, 2010

About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Who must be a co founder and who can remain a hired principal? Who must be a co founder and who can remain a hired principal?

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Startup Company Lawyer

JULY 20, 2009

Once again, please keep in mind that the documents from typical online incorporation services do not contain IP assignment provisions in connection with the purchase of founders stock or separate IP assignment documents. Hiring employees or third party contractors.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

The Next Web

JUNE 15, 2012

From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. Many young tech startups reserve 15%-20% for employee stock options. It’s a logical solution.

Equity 116

Equity Stock Options Vesting Stock 116

blog.simeonov.com

FEBRUARY 22, 2010

However, founder agreements are not set in stone and it is common for them to be tweaked by a little or a lot during the first financing by professional investors. They have voting rights which may entitle them to force or veto certain key decisions, e.g., hiring or firing the CEO, selling the company, raising money, etc.

Founder 44

Founder Vesting Agile Startup 44

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

venturehacks.com

MARCH 21, 2008

Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options. Advisory shares are normal common stock. The options typically vest monthly over 1-2 years with 100% single-trigger acceleration and no cliff. What are advisory shares?

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

venturehacks.com

OCTOBER 21, 2010

Use a hiring plan to justify a small option pool, increase your share price, and increase your effective valuation. 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.&# Solution: Use a hiring plan to size the option pool.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Austin Startup

MAY 17, 2017

The Board of Directors, however, is the most powerful group of people in the Company , with the ability to hire and fire senior executives and approve (or block) key transactions. Their interests as an investor are more aligned with the new VCs investing in the Series A than they are with the Common Stock. They just advise.

Seed Stage 48

Seed Stage Startup Cap Table Angel Investor 48