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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division. Sometimes, however, there’s an existing code base that one co-founder brings.

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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division. Sometimes, however, there’s an existing code base that one co-founder brings.

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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division. Sometimes, however, there’s an existing code base that one co-founder brings.

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Should You Share Equity with Consultants?

www.inc.com

Internet and Online Business. If youre offering the consultant stock options, youll also want to take into consideration what the exercise price is going to be and how long the options will be outstanding. Create an options pool, if nothing more than in your mind, so you have some parameters to work within," Durkin says.

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ProfessorVC: Touched by an Angel

Professor VC

At a $1 million, pre-money, with an investment of $500K, that would leave 67% of the company for the founders and initial option pool. Keeping this simple with no employee option pool and just founders and investors, investors would hold 60% at this point (20% for angels and 40% for VCs) and founders would have 40%.

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Most Common Early Start-up Mistakes

Both Sides of the Table

You can find a good start-up lawyer to help or if you want to do it on the cheap there are tons of websites you can find on the Internet to help. 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. Pick the founding members.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Meyler Capital is taking the analytical rigor of modern internet marketing and applying it to fund marketing. . The Long Term Stock Exchange is building out a set of tools for founders for managing their cap tables, 409A valuations, cash on hand, options pool, investor relations, etc.