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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.

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Founders Should Set Aside More Equity for Their Team & “Split the Pain” With Investors

Hunter Walker

But employee option pool is important enough that I wanted to briefly expand upon my comment above. Since Homebrew typically leads/co-leads seed rounds, we assist in helping founders design and manage their pool against their hiring forecast. As you can see, Weekend VC Twitter gets pretty wild and crazy!!!!

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

Tim Keane

  In a bottom up approach, the forecast is built from actual user projections. 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.

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The New Funding Landscape

www.paulgraham.com

Angels are individualrich people who invest small amounts of their own money, while VCsare employees of funds that invest large amounts of other peoples. The short term forecast is more competition between investors, whichis good news for you. Fortunately if thisdoes happen it will take years.