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Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." I'll get to service providers in a later post. Which means n = (i - 1)/i.

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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

Often difficult to get, the first engineer sets the tone for the rest of the development team. In exchange, the engineer is likely offered the promise that his or her option shares will one day turn into big money. Startup employees are granted common shares out of something called an option pool.

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Venture Deals 4e German Edition

Feld Thoughts

He believes the structures originally developed in the U.S. regarding employee issues. ” This must have meant Germany… If a company regularly has more than ten full-time employees, terminations may only be made for certain reasons. .” Then you may only terminate those employees you actually still want to keep.

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How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? Equity for Employees. Strike price of options: meaningless.

Equity 62
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Cash-strapped? How to pay for services with your startup’s equity

The Next Web

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. However, if you are thinking about compensating non-employees with equity, make sure to consider the following points: 1.

Equity 116
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Twitter Link Roundup #202 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

Model Equity Calculator for Founders with Option Pool Expansion – crowdspring.co/1fwUdsA. Legal Contracts for Software Developers Who Hate Contracts (w/free contract template to use today) – [link]. 28 Free Resource Websites for Designers and Developers – crowdspring.co/18mjrou.

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Cap Table Explained — What is it and How to Maintain it for Investors

Up and Running

Later, when the startup develops and becomes profitable, the value of that stock can double or triple. Total share ownership is the sum of the common stock, stock options, preferred stock, and any other stock category for a single individual. Outline your plans for future employee stock option pools.

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