Berkonomics

MAY 12, 2010

First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. (The Each grant to new or existing employees must be approved by the board before issue. The price per share for option grants is also an important consideration. There are some rules.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

David Teten

DECEMBER 3, 2019

Point Nine Capital uses 15Five for continuous employee feedback. Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. The Pocket Negotiator is very early-stage attempt to aid in the negotiating process itself.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Up and Running

SEPTEMBER 20, 2021

Total share ownership is the sum of the common stock, stock options, preferred stock, and any other stock category for a single individual. Here you can see that the founders own most of the shares at 67.7%, then the ESOP (employee stock option pool) at 12.31 Outline your plans for future employee stock option pools.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

www.instigatorblog.com

OCTOBER 23, 2010

Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. His company had just closed an early round of funding and he wanted to cement the employee relationships. Those first employees will take 0.5-1%

Equity 41

Equity Employee Startup Vesting 41

Austin Startup

JANUARY 25, 2020

So I have embraced it fully, and though we are still in the early stages (seed stage), it’s the hardest thing I have ever done yet it’s the most fulfilling thing to me. legal fees in the early stages. No class, no community project, and certainly no job straight of college can teach you all this?—?or

Delaware 62

Delaware SEC New York City New York 62

venturehacks.com

FEBRUARY 24, 2010

The best sellers can sell to customers, partners, investors, and employees. Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Build in founder vesting (a.k.a.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

Genuine VC

FEBRUARY 28, 2011

So optimizing a startup offer involves not just one key figure – salary – but also the option package. Nearly all startup employees receive a number of options figure in their offer. ” The details surrounding stock options are often complex and confusing for non-financially-oriented individuals.

Startup 121

Startup Equity Vesting Salary 121

www.startupnorth.ca

OCTOBER 23, 2010

Home Events Contact Jobs StartupIndex Founders versus early employees by David Crow on September 10th, 2009 in Resources Not everyone can be a founder. But for every founder, there is an early employee that takes near equal risks in joining an early-stage company. How do you compensate early employees?

Employee 41

Employee Founder Salary Equity 41

Hunter Walker

MAY 7, 2014

That’s fine – early stage founders aren’t expected to know everything. Hiring a Head of Product as one of your first 10 employees? Building a senior team but pushing back on having a healthy employee option pool? You want to show that you can solve any problem. Won’t work out well.

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 5 Stock vs Options. NOTE: If youre an attorney or tax accountant with experience helping startup employees with stock and option issues, drop me a note. The preferred stock held by investors has (as the name implies) more rights and privileges than the common stock issued to employees.

Equity 56

Equity Employee Vesting Preferred Stock 56

techcrunch.com

FEBRUARY 25, 2010

You could make the same argument about acquisitions and option pools. As Mark Suster recently noted , employees will never see a big payday at most startups unless the company shoots for the moon. The remaining 95 employees split 7%, each earning $27,000. Each executive gets $5 million. But the reverse is happening.

Liquidation Preference 63

Liquidation Preference Founder Option Pool Acquisition 63

www.paulgraham.com

APRIL 28, 2010

The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Theres only common stock at this stage.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Professor VC

JANUARY 17, 2008

There needs to be enough equity to go around for founders, early investors, later investors, and employees. At a $1 million, pre-money, with an investment of $500K, that would leave 67% of the company for the founders and initial option pool. The best way to describe my work is probably start-up CFO guy.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Tim Keane

JANUARY 12, 2010

  A cumulative dividend can get to be very expensive and is not often a feature in early stage terms. Especially in situations where the founders have a large position and are key employees, it is not uncommon for investors to request that they agree to have some portion of their holdings vest on a schedule.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

venturehacks.com

SEPTEMBER 22, 2011

Paul says, “Whenever you’re trading stock in your company for anything, whether it’s money or an employee or a deal with another company, the test for whether to do it is the same. Consider the opportunity cost of spending shares on employees and investors. We previously posted a table of market rates for employees.

Equity 40

Equity Cap Table Valuation RSS 40