article thumbnail

Why offering employee equity is crucial for your startup

The Next Web

Dealing almost exclusively with first time startup founders, we tackle the following question with nearly all of our CEOs: How much equity should they give to the employees? In one instance, I told a CEO that we typically recommend a 15 percent stock options pool at seed/Series A stage. This story continues at The Next Web.

Equity 154
article thumbnail

Entrepreneurs: Your instincts are always better than bad advice

The Next Web

More often than not, these companies have no formal option pool, although many have either formal or informal promises to grant options to key employees. While there are no hard and fast rules, when we make a Series A investment we expect to own around 20% of the company on a fully-diluted basis.

Cap Table 128
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Option Pool Shuffle

venturehacks.com

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS The Option Pool Shuffle by Nivi on April 10th, 2007 “Follow the money card!&# – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you. Don’t lose this game. share to $1.00/share:

article thumbnail

When The VC Asks: About Your Hiring Plan

Hunter Walker

Their ultimate goal was a native mobile app but they’d built a proof of concept on web (with some light mobile web responsiveness). 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? Won’t work out well.

Hiring 108
article thumbnail

How to Find the Perfect Startup Job: Part IV "Negotiating the Startup Offer"

Genuine VC

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
article thumbnail

What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

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? Startup employees are granted common shares out of something called an option pool. These common shares are granted to founders from the beginning, not employees.

Engineer 129
article thumbnail

Cash-strapped? How to pay for services with your startup’s equity

The Next Web

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