www.avc.com

SEPTEMBER 22, 2011

Employee Equity: How Much? The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. And the amount of equity you need to grant to accomplish these hires is also an art and most certainly not a science.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Startup Professionals Musings

SEPTEMBER 25, 2019

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. 7% Product Manager,2 -.3%

Equity 237

Equity Stock Options Advisory Board Stock 237

Feld Thoughts

SEPTEMBER 2, 2011

The founders each have common shares that will vest over four years. The vesting schedule protects each of the co-founders in case one gets hit by a bus or decides to drop the project after a short period of time. Equity is split 55% and 45%, but where is that officially recorded? Time to update the cap table.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

Startup Professionals Musings

JULY 1, 2022

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. 7% Product Manager,2 -.3%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Steve Blank

MAY 19, 2015

retaining their existing hires who were working for intern-like salaries with little equity. These were the employees that had the institutional knowledge and hard-earned skills. Unfortunately the people who could best train them were the underpaid employees who were now out looking for new jobs. the company had.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

View from Seed

DECEMBER 4, 2014

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly. Sometimes co-founders put off the equity split question for some time.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Startup Professionals Musings

APRIL 10, 2016

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

APRIL 8, 2015

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary. Marty Zwilling.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

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

Agile VC

DECEMBER 4, 2014

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

www.mattbartus.com

SEPTEMBER 24, 2011

Equity for Consultants – Keep it Simple! posted Feb 3 in Equity , People issues. We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” The most you lose is 1 or 2 months of vesting on the stock. Blog blog archive. Quora Answers.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

David Teten

MAY 7, 2019

Would you like to have a salary from day one that you work full-time on your startup? Do you wish there was a product to help companies “Get things done” by leveraging your own employees, your employees’ networks, and more broadly other influencers around you? . And how do you split the equity? This work is unpaid.

America 60

America Technical Review Advisory Board Due Diligence 60

David Teten

JULY 10, 2019

pre-launch, BIG equity, big peeps involved–ANY TIPS?? Would you like to have a salary from day one that you work full-time on your startup? Would you like to have a salary from day one that you work full-time on your startup? We agree on an equity split, vesting, and initial compensation structure.

America 60

America Technical Review Advisory Board Due Diligence 60

Agile VC

DECEMBER 4, 2014

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

Startup Professionals Musings

JULY 24, 2011

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened to many companies in the last few years.

Equity 234

Equity Advisory Board Stock Options Stock 234

Andrew Payne

SEPTEMBER 9, 2017

I’ve probably had a thousand or more discussions about startup equity: figuring out how much to offer, negotiating, or advising others. In practice, most equity grants within a company are driven by broad calibrations with existing employees. Also, founders should absolutely implement some form of vesting.

Equity 71

Equity Founder Vesting Dilution 71

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 4 Vesting. 7 Salary vs Equity. 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. From Payne.org Wiki. 3 Dilution. 5 Stock vs Options.

Equity 56

Equity Employee Vesting Preferred Stock 56

Hunter Walker

DECEMBER 18, 2015

Bloomberg’s article about lower-than-expected financial gains from startup IPOs for midlevel employees stuck in craw this week because there’s a handful of complex issues at play here. Even in successful companies, most initial equity grants will be worth a few hundred thousand dollars to perhaps $1-2m, when fully vested.

Equity 48

Equity Employee IPO Vesting 48

Startup Professionals Musings

OCTOBER 21, 2017

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. 7% Product Manager,2 -.3%

Stock 140

Stock Stock Options Advisory Board Startup 140

Startup Professionals Musings

OCTOBER 17, 2013

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years.

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Stock Options Stock Advisory Board Startup 224

David Teten

SEPTEMBER 2, 2017

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. Also see Preqin’s Key Due Diligence Considerations for Private Equity Investors. . VC and private equity are very illiquid on both the investing and the personnel side. – Share and vesting of Carry.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

Both Sides of the Table

MAY 9, 2011

Give them a large sum of equity. Vested over 4 years. They don’t want the risk of the first 3-6 months with no salary and having to walk around with a tin-cup for funding. Most senior employees who join are given 2% if they join early. Hire your co-founder. I talk about that in more detail here. That’s OK.

Cofounder 393

Cofounder Founder Vesting Founder Vesting 393

Startup Professionals Musings

SEPTEMBER 22, 2012

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years.

Stock Options 230

Stock Options Stock Advisory Board Startup 230

Hunter Walker

JANUARY 10, 2018

Even though your equity is unlikely to make you rich , there are plenty examples of when it does to extraordinary levels. That salary never came back. It’s why we counsel founders to understand the situation of a potential employee when designing a compensation package (in ways that remain legal and appropriate).

Silicon Valley 195

Silicon Valley San Francisco Vesting .Net 195

Startup Professionals Musings

MARCH 29, 2015

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. 7% Product Manager,2 -.3%

Stock Options 120

Stock Options Stock Advisory Board Startup 120

Genuine VC

FEBRUARY 28, 2011

This post doesn’t going into general tactical approaches of job offer negotiation, but rather focuses on the fact that with startups a significant part of compensation is related to equity or options. So optimizing a startup offer involves not just one key figure – salary – but also the option package.

Startup 121

Startup Equity Vesting Salary 121

grasshopper.com

SEPTEMBER 24, 2011

Getting Paid in Equity: A What to Do Guide. Equity-based pay is often used by the founders of young start-ups who want to grow their businesses but cannot offer big salaries to qualified professionals. Below are some helpful tips and suggestions to keep in mind when contemplating whether or not to take an equity-based position.

Equity 41

Equity Vesting Sweat Equity Salary 41

Startup Professionals Musings

JUNE 20, 2010

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened to many companies in the last few years.

Stock 144

Stock Stock Options Advisory Board Startup 144

Austin Startup

AUGUST 20, 2017

They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance. Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Hippoland

DECEMBER 18, 2016

Dear elizy : What’s reasonable for a founder salary? For example: I’ve got 13 years of professional experience, an MBA and I have run several of my own businesses. -Salary Concerns in LA Dear Salary Concerns: Hmm…lots of thoughts here… 1) Your MBA doesn’t matter here Sorry.

Las Vegas 48

Las Vegas Salary Burn Rate San Francisco 48

thinkspace.com

SEPTEMBER 7, 2012

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 Founders. Equity for Employees.

Equity 62

Equity Employee Founder CTO Hire 62

Hunter Walker

AUGUST 24, 2014

When Google went public in August of 2004 one of the first things I did with my employee grants was sell enough to pay off my student loans. The vast majority of my future savings was (a) not vested yet and (b) tied to hope for future stock grants I’d earn. Did I work any less hard the next day because of my liquidity event?

Founder 108

Founder San Francisco Liquidity Event LP 108

ithacaVC

SEPTEMBER 17, 2015

VP and higher positions are outright entitled to understand exactly the percentage ownership of the company their equity package represents. Equity packages are either stock options or restricted stock. VP and higher positions are often given change of control acceleration on their equity vesting. https://angel.co/salaries.

Startup 40

Startup Stock Options Vesting Equity 40

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? This ties into this Paul Graham article: [link] /equity. This answer.

Equity 40

Equity Employee Founder Cofounder 40

Berkonomics

NOVEMBER 23, 2023

Here is the warning: The execution of equity allocations and of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. … Equity is divided between the founders and the business begun.

Equity 62

Equity Stock Options Vesting Early Stage 62

The Next Web

OCTOBER 7, 2013

Quite frankly, waiting provides more assurance around employment risk without the commensurate sacrifice in equity comp. From the perspective of my outside friends, why are employees that so clearly impact the growth trajectory of a company look like they’re getting screwed? Facebook’s engineer #100 isn’t doing poorly.

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Engineer Dilution Option Pool Vesting 129

Scott Edward Walker

JUNE 23, 2011

Not only are there key contractual issues that must be buttoned-down (like vesting and IP assignment ), but also there is a minefield of laws and regulations that must be complied with. The most common employment violations are (i) misclassifying an employee as an independent contractor and/or (ii) failing to pay an employee the minimum wage.

Accredited Investor 82

Accredited Investor Sweat Equity Los Angeles Finder 82