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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

And Mark Suster of Upfront Capital has a great post that summarizes these changes. The first big idea is that unlike in the 20 th century when there were two phases of funding startups– Seed capital and Venture capital–today there is a new, third phase. It’s called Growth capital.

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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. This needn’t be some terribly complex formula that tries to do a cost accounting of everyone’s contribution to the decimal point.

Equity 315
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Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku. (For more on working with startup lawyers, see Mark Suster’s classic post, How To Work With Lawyers At A Startup.).

Finance 178
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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. This needn’t be some terribly complex formula that tries to do a cost accounting of everyone’s contribution to the decimal point.

Cofounder 255
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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. This needn’t be some terribly complex formula that tries to do a cost accounting of everyone’s contribution to the decimal point.

Cofounder 173