Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

The Next Web

JUNE 15, 2012

From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. However, if you are thinking about compensating non-employees with equity, make sure to consider the following points: 1.

Equity 116

Equity Stock Options Vesting Stock 116

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 Employees. Strike price of options: meaningless.

Equity 62

Equity Employee Founder CTO Hire 62

David Teten

DECEMBER 3, 2019

Point Nine Capital uses 15Five for continuous employee feedback. The reports showcase raw data, analytics, visualizations, and benchmarking statistics on the company from dozens of sources, including team, intellectual property, technology, product, financial, banking, marketing, customer, risk, valuation, and investment information.”.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Hunter Walker

AUGUST 7, 2017

But employee option pool is important enough that I wanted to briefly expand upon my comment above. As a result we’re often amenable to a CEO suggesting, “hey, I’ve thought about it and I’d actually like to create a 12% pool instead of a 10% one.

Equity 94

Equity Pre-Money Valuation Option Pool Founder 94

Both Sides of the Table

AUGUST 17, 2009

Assuming normal valuations at fund raising rounds you’ll be down to 6-12% after you’ve created a stock-option pool and raised capital. But these people seldom make retirement money from the stock options on these companies. It is hard enough to have a great financial outcome when you start with 100%.

Founder Vesting 365

Founder Vesting IP Intellectual Property Stock Options 365

www.mattbartus.com

DECEMBER 9, 2012

How to pump up your VC valuation. Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. You have a 20% option pool, so you know this will take your ownership down from 80% to 60%, and the VC will get 25%. Option Pool.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

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. Better how?

Technical Review 76

Technical Review Startup Software Review Vesting 76

www.inc.com

SEPTEMBER 24, 2011

Employee Benefits. Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. "We Business Taxes.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Business Plan Blog

NOVEMBER 20, 2013

It can be difficult to give away a piece of your “baby”, and this early in the startup stage it is almost impossible to determine the valuation to your company. You also need to think about how much equity you want to have set aside and available for your future employees in your option pool. How much equity do you offer?

Equity 61

Equity Option Pool Cofounder Vesting 61

ithacaVC

DECEMBER 13, 2013

The share price is calculated by taking the pre-money valuation and dividing it by the number of shares outstanding pre-money. So Share Price (SP) = Pre-Money Valuation (PMV) / Shares Outstanding (SO). On a fully diluted pre-money basis, that would mean the option pool represents 14.5% (356,758/2,456,758) of the cap table.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

Both Sides of the Table

NOVEMBER 4, 2009

Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation. He’d be employee number 3. When we next spoke he had found out that the CEO had about 5% and there was no management option pool in place.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Austin Startup

JANUARY 25, 2020

And that’s fine, but to learn the most you can in the shortest amount of time, and to actually grow up and truly understand the way things are built, working on a startup is the best way. Working in the office Also, when I first came back to NYC, I realized I needed to get some kind of office space for the team.

Delaware 62

Delaware SEC New York City New York 62

Professor VC

JANUARY 17, 2008

Another comment which probably deserves more discussion is around valuation. One of the panelists mentioned that they have gotten very valuation sensitive (nothing wrong with that) and like to purchase preferred stock rather than invest in convertible notes. Labels: angel groups , valuation. See you next time. Steve Bennet.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

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

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. David Beisel We need to celebrate the employees at startups.

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Employee Founder Salary Equity 41

Scott Edward Walker

NOVEMBER 26, 2017

From a practical perspective, this means getting actively involved in your local tech community, regularly attending industry events and conferences, writing blog posts/articles, integrating yourself into communities on social networks and, of course, doing outstanding work as an employee (to develop a great reputation).

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

venturehacks.com

MARCH 21, 2008

Or they bring you a handful of great employees. Many advisors want options they can exercise immediately —that’s fine. If your company hasn’t raised a Series A, increase the advisor’s equity by roughly 30%-50% to account for dilution from seed investors, Series A investors, option pools, swimming pools, and the like.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

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. Offers from top-tier firms increase your valuation.

Equity 40

Equity Cap Table Valuation RSS 40

www.paulgraham.com

OCTOBER 23, 2010

Angels are individualrich people who invest small amounts of their own money, while VCsare employees of funds that invest large amounts of other peoples. And those who do raiseVC rounds will be able to get higher valuations when they do. ButVCs never offered that option. 6 ] Some super-angels seem to care about valuations.

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Valuation Stock Partner Founder 92

BeyondVC

MAY 20, 2004

Therefore, what concerns me is what happens to the non-executive employee at public companies and how stock option expensing affects private companies. It will eliminate broad-based option pools for public companies and private companies. The post Stock option expensing appeared first on BeyondVC.

Stock Options 60

Stock Options Stock Securities and Exchange Commission Option Pool 60