Remove Employee Remove Finance Remove Liquidation Preference Remove Web
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How to Discuss Stock Options with Your Team

Both Sides of the Table

I was thumbing through Twitter messages on my Blackberry on Monday (I use Twitter as a “ mobile first, web second &# product) when I saw the following Tweet (see graphic). Options are obviously a very important economic motivator for your first 3-5 employees and your most senior management team. I prefer not to.

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Working for Equity Instead of Cash

genylabs.typepad.com

I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have.

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How much equity for investors and employees?

dondodge.typepad.com

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? How much equity should I grant to early employees? It isnt always possible to have a competitive bidding situation at each financing round so here are some guidelines for funding sources and percentages.

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Top 30 Startup Posts in June 2010

SoCal CTO

How-to learn about angel/vc term sheets - Gabriel Weinberg , June 28, 2010 I think every startup entrepreneur (and angel investor) should have a good understanding of financing term sheets. liquidation preference. Your employees can’t also be your friends. Yes, even bootstrappers. Running a business is not an easy job.

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Investors Beware: Today’s $100M+ Late-stage Private Rounds Are Very Different from an IPO

abovethecrowd.com

Historically, different financial institutions specialized in different stages, because the assessment of risk and opportunity was considered unique at each stage — for example, a seed investor was unlikely to do late-stage financing, and vice versa. These liquidation preferences give the investor a debt-like downside protection.

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