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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while. They come up with two options: Hire Praveena as an employee and offer her stock options. If the full pool were to be given out, the dilution is fairly significant to the founders.

Cap Table 133
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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

I’m not sure I really even need to write this at length because Nivi absolutely nailed the topic in his article “ The Option Pool Shuffle.&#. When I went to raise money in 2006 I thought I knew every term in a term sheet but somehow I still got a bit duped by the option pool shuffle. No option pool shuffle.

Valuation 405
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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

Distribution revenue is CPC and CPA. . Historically more revenue came from distribution/lead-gen (57% in 2007), but this tipped in 2008 though appears to be steady from 2009 to 2010 at about 58% advertising and 42% distribution. Kayak generates both distribution (i.e. Expedia accounted for 24.5% as of 12/31/09).

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Entrepreneurs: Your instincts are always better than bad advice

The Next Web

More often than not, these companies have no formal option pool, although many have either formal or informal promises to grant options to key employees. The real value that these partners can bring is through being great customers, great suppliers or a distribution partner.

Cap Table 128
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The Future of Startup Funding

www.paulgraham.com

The distribution of investors should mirrorthe distribution of startups, which has the usual power law dropoff.So 2 ]Its not the distribution of good startups that has a powerlaw dropoff, but the distribution of potentially good startups,which is to say, good deals. 13 ]Im not saying option pools themselves will go away.

Startup 93
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Should You Share Equity with Consultants?

www.inc.com

If youre offering the consultant stock options, youll also want to take into consideration what the exercise price is going to be and how long the options will be outstanding. Create an options pool, if nothing more than in your mind, so you have some parameters to work within," Durkin says. Toshiba Laptops. Get ahead.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

A liquidation preference means that the investors receive their investment back (plus dividends) prior to a distribution of the proceeds to stockholders. The investor may also ask for a participation in which the investors receive some additional multiple of their investment prior to distribution of proceeds to stockholders.