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

Eric Friedman

DECEMBER 27, 2021

4/ Streaming equity – venture funds + employee stock becomes more liquid. 7/ SaaS roll-ups and micro-private equity become huge. Startups pave the way for in person only monthly, quarterly, or bi-annually and large corps have 2 day a week in offices. Startups are more likely to pay mercenaries with expertise (like me!)

Balance Sheet 97

Balance Sheet Stock Private Equity Option Pool 97

crowdSPRING Blog

NOVEMBER 15, 2013

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! Six Key Benchmarks for Your SaaS Startup – crowdspring.co/1d6kQCY. Model Equity Calculator for Founders with Option Pool Expansion – crowdspring.co/1fwUdsA.

Social Media 93

Social Media Small Business Design Media 93

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

www.inc.com

SEPTEMBER 24, 2011

Advisor. ); STARTUP. Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. Parker found that equity as compensation helped build loyalty to his company -- even among consultants. Email address: Home.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. See Bessemer Venture Partners’ A comprehensive guide to security for startups. 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

venturehacks.com

OCTOBER 21, 2010

Venture Hacks Good advice for startups. 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.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

www.instigatorblog.com

OCTOBER 23, 2010

Home About Contact My thoughts & lessons learned on startups, entrepreneurship, marketing and other stuff. 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. the better the startup will be.

Equity 41

Equity Employee Startup Vesting 41

Both Sides of the Table

AUGUST 3, 2010

There is a telltale sign of an inexperienced startup entrepreneur. As a startup you shouldn’t focus on buying other companies until you’ve figured out your own business. A close friend of mine in LA who is 3 years into his startup called me about 2.5 Tags: Startup Advice. They get premature merge elation.

Merger 276

Merger Technical Review Early Stage Dilution 276

Pascal's View

JULY 9, 2017

Unfortunately, what the CEO/founder forgets most often is that the notes have a multiplier effect in the post-money calculation; the more notes and the further the cap is from the new priced equity, the greater the variance between actual and nominal pre- and post-money valuations. It’s going to be great!”.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Up and Running

SEPTEMBER 20, 2021

The use of a cap table for a company comes into play when it has to track the total amount of shares, the value of shares, and the equity ownership of all the shareholders. The data of the company, such as debt and the company’s equity ownership, is laid out with the help of a cap table. Common shares. Preference shares.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Gust

SEPTEMBER 13, 2012

In general, and in a more-or-less-ideal world, companies should be prepared to give up roughly 20%-40% of equity for each round of early financing, where the size of each round is enough for the company to increase its valuation significantly. After Seed: 80%. After Series A: 64%. After Series B: 51%.

Option Pool 160

Option Pool Equity Valuation Startup 160

Business Plan Blog

NOVEMBER 20, 2013

Raising Funding From Family and Friends: Division of Equity. When it comes to the division of equity in startup, there is a similar process every entrepreneur must follow beginning with raising the first round of startup funding and, if you’re lucky, finishing at the point of IPO. How much equity do you offer?

Equity 61

Equity Option Pool Cofounder Vesting 61

www.paulgraham.com

OCTOBER 23, 2010

Want to start a startup? August 2010 Two years ago I wrote about what I called " a huge, unexploitedopportunity in startup funding :" the growing disconnect betweenVCs, whose current business model requires them to invest largeamounts, and a large class of startups that need less than theyused to. Get funded by Y Combinator.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

Gust

NOVEMBER 8, 2012

The bottom line is that the very question you are asking is one of the trickiest things of all when it comes to startup founding. original post can be found on Quora @ : [link] *.

Founder 134

Founder Option Pool Vesting Cofounder 134

The Next Web

OCTOBER 21, 2013

As the European startup ecosystem matures, you would expect young entrepreneurs to enjoy ever-increasing access to useful advice from mentors, business leaders, experienced entrepreneurs, legal advisors and investors. Neil Rimer is a Partner and co-founder of Index Ventures.

Cap Table 128

Cap Table Option Pool Angel Investor Entrepreneur 128

Both Sides of the Table

JUNE 5, 2015

Over the years I’ve written extensively about the downsides of convertible notes for startups such as here , here and here. ” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. How much is in the option pool?

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Eric Friedman

DECEMBER 30, 2020

This did not end up happening at all but there are a few startups working in this space which I think have a shot 2/ NFTs (non-fungible-tokens) will emerge as a killer use case inside an incredibly fun game at a scale. 4/ Streaming equity – venture funds + employee stock becomes more liquid. No, but Salesforce bought slack.

Stock 120

Stock Private Equity Option Pool LP 120

www.paulgraham.com

APRIL 28, 2010

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. 1 ] A startups life will be more complicated, legally, if any of theinvestors arent accredited.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

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

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 5 Stock vs Options. 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. 4 Vesting.

Equity 56

Equity Employee Vesting Preferred Stock 56

The Startup Lawyer

FEBRUARY 4, 2011

Great news — your startup just got accepted to an incubator! But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. Pre-money valuations startups receive from incubators are typically low…really low.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Agile VC

APRIL 17, 2011

AGILEVC My idle thoughts on tech startups. Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. How to Evaluate Firms for a Seed VC. How To Think About The Future. And Why 20%?

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

venturehacks.com

FEBRUARY 24, 2010

Venture Hacks Good advice for startups. FAQs What if the right guy already has his own startup? Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

Hippoland

APRIL 10, 2016

We are trying to decide how much equity to allocate to each person. I would like to split the equity equally, since it seems only fair. But, Ada wants to split the equity 50% her, 20% Bob and 20% me with a 10% option pool. Super active, hands-on advisors are typically granted < 5%.

Cofounder 48

Cofounder Cap Table Equity Vesting 48

venturehacks.com

SEPTEMBER 22, 2011

Venture Hacks Good advice for startups. The Equity Equation. As this nuclear winter of venture hacks continues, I thought you might enjoy our thoughts on Paul Graham’s The Equity Equation. ” Read the rest of The Equity Equation first; it is great. You have to pay market rates regardless of the equity equation.

Equity 40

Equity Cap Table Valuation RSS 40

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   Posted at 04:19 PM in Funding startups | Permalink. TrackBack URL for this entry: [link].

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

VC Cafe

OCTOBER 16, 2010

After using Quora for a few months, I’ve found it a very helpful source of information on anything startup related: from technology, to strategy and even gossip, if that’s what you’re after. How much should it cost for a bootstrapped, lean startup to incorporate (or form an LLC)? Nothing else. Short answer: Patagonia.

Option Pool 88

Option Pool Analytics LLC Startup 88

Business Plan Blog

SEPTEMBER 18, 2012

Reserve 10-20% Of Your Company’s Outstanding Equity For A Stock Option Plan. Equity incentives are a major form of compensation for most emerging growth and technology companies. It is critical for a start-up to consider this reality and reserve 10-20% of its outstanding equity for a stock option plan.

Stock Options 61

Stock Options Stock Option Pool Dilution 61

Early Growth Financial Services

DECEMBER 4, 2014

Let me say that first, you should have already retained a good startup lawyer. It could be the size of the option pool, or maybe the provisions around reverse vesting. I discussed Change of Control, Reverse Vesting, and Liquidation Preferences in … Continue reading → Equity / Debt / Venture Funding'

Term Sheet 51

Term Sheet Liquidation Preference Vesting Option Pool 51

venturehacks.com

MARCH 21, 2008

Venture Hacks Good advice for startups. 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. Equity is the gift that keeps on giving.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

The Next Web

AUGUST 14, 2013

But since I’m relatively fresh off of the experience I get asked by first-time founders how they should go about raising money for their startup. Consult/freelance to pay off your expenses and leave the rest of your time for working on your startup. You don’t need to be in SF or NY to get your startup off the ground.

Founder 142

Founder Incubator Cofounder Accredited Investor 142

Hunter Walker

MAY 7, 2014

I recommend to founders that if there’s a unicorn you need who isn’t on founding team, (a) start identifying those people in advance of fundraising and (b) prepare to compensate them generously via equity. That’s not healthy for a startup. Building a senior team but pushing back on having a healthy employee option pool?

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

techcrunch.com

FEBRUARY 25, 2010

This is an anonymous guest post from a well known startup executive: When we split the atom, Einstein remarked that everything changed but our way of thinking. You could make the same argument about acquisitions and option pools. This has always been true, but now that more startups are being bought, it has become less common.

Liquidation Preference 63

Liquidation Preference Founder Option Pool Acquisition 63

www.mattbartus.com

DECEMBER 9, 2012

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. 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. Option Pool. Equity for Consultants - Keep.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

www.startupnorth.ca

OCTOBER 23, 2010

We talk about the founders of startups and companies. Steve Blank divides the individuals associated with startups as: Founders Early Employees (Employees # 1-25) Later Employees (Employees # 26-125) The majority of his division is about the temperament of the individual as related to risk and dealing with chaos and uncertainty.

Employee 41

Employee Founder Salary Equity 41

www.paulgraham.com

OCTOBER 23, 2010

Want to start a startup? October 2010 After barely changing at all for decades, the startup fundingbusiness is now in what could, at least by comparison, be calledturmoil. At Y Combinator weve seen dramatic changes in the fundingenvironment for startups. Most startups coming out of Demo Day wanted to raisearound $400k.

Valuation 92

Valuation Stock Partner Founder 92