Gust

AUGUST 30, 2012

Characteristics of the Market. Size, Growth, Concentration, Geography, Demographics, Competition, Channels, Regulatory Environment, Technological Developments, Adjacent Markets, Characteristics of the Deal.

Founder Vesting 144

Founder Vesting Option Pool Exit Strategy Vesting 144

The Next Web

OCTOBER 21, 2013

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

Cap Table Option Pool Angel Investor Entrepreneur 128

Agile VC

APRIL 17, 2011

Last week ZipCar began trading and has a market cap of about $1 billion. Only 7% of the search queries are performed by users referred by search engines, meaning Kayak’s brand is very strong and they continue to build it ($39M spent in 2010 on brand advertising, nearly $92M in total marketing spend). Quinstreet priced at $15.00/sh

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

venturehacks.com

OCTOBER 21, 2010

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:

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Eric Friedman

DECEMBER 30, 2020

With the advent of programs like CartaX and what I call streaming venture funds , the liquidity in private markets is going to get the foundation to grow significantly in 2021. 4/ Streaming equity – venture funds + employee stock becomes more liquid. 5/ The rise of operator angels + micro VCs explodes in 2021.

Stock 120

Stock Private Equity Option Pool LP 120

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. SALES & MARKETING. Online Marketing. Bringing Innovation to Market. a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. Get and keep customers with affordable online marketing tools. Finance | Tuesdays. Innovation | Fridays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

VC Adventure

NOVEMBER 1, 2018

There are, of course, some items that the board has specific decision making authority over (buying another company, increasing the option pool, signing leases of a certain size, etc.).

Design 257

Design Option Pool Operations Conversion 257

Austin Startup

JANUARY 25, 2020

I had done door to door marketing, neighborhood window replacement appointment setting, street sign-ups, etc. I hated going into bars and engaging with people there in the evenings. I didn’t mind interacting with people during the day, outside, on the streets, anywhere else?—?I

Delaware 62

Delaware SEC New York City New York 62

The Startup Lawyer

FEBRUARY 4, 2011

Other incubators may want to set up an option pool. If so, the startup’s founders need to know this option pool lowers your pre-money valuation. 6) Search For the Incubator’s PR and Marketing Efforts.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Both Sides of the Table

NOVEMBER 4, 2009

If you’re thinking about joining as the director of marketing, product management manager, senior architect, international business development lead, etc. When we next spoke he had found out that the CEO had about 5% and there was no management option pool in place. Let’s face it. He hadn’t thought to ask.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

The Next Web

OCTOBER 7, 2013

Startup employees are granted common shares out of something called an option pool. It is typical for employees to vest their options over four years with a one year cliff, which means a new hire must stay on the company for at least one year to see any shares. What’s everyone else getting?

Engineer 129

Engineer Dilution Option Pool Vesting 129

Hunter Walker

MAY 7, 2014

Whether it’s adding capacity to an existing function (#MawrEngineers) or bringing new talents onboard (“we intend to make our first marketing hire”), glossing over these bullet points towards the back of the pitch deck would be a mistake. Building a senior team but pushing back on having a healthy employee option pool?

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

Seeing Both Sides

JULY 15, 2009

Another term that impacts the price is the size of the option pool. Most VCs invest in companies that need to hire additional management team members and sales and marketing and technical talent to build the business. We put forward a “6 on 7” deal with a 20% option pool. I was competing with another firm.

Pre-Money Valuation 49

Pre-Money Valuation Option Pool Stock Options Post-Money Valuation 49

Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » January 12, 2010. Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values. Startups and angels: Along the way to success. times at 5 years and 11.39 here of 7.65 [2].

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Genuine VC

FEBRUARY 28, 2011

On the equity side, each startup has a fixed option pool from which they’re drawing. Equity – Your salary will be brought to market standards as the company progresses and hires people with equivalent seniority, but this opportunity is the one major bite at an equity piece. Senior-level position. Early-Stage.

Startup 121

Startup Equity Vesting Salary 121

www.paulgraham.com

OCTOBER 23, 2010

10 ]The shift in power to founders is exaggerated now becauseits a sellers market. They may not care; they may prefer to work with aninvestor they already know; but as the investment market becomesmore efficient, it will become increasingly easy to get market priceif they want it. Theyrean administrative convenience.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

Rob Go

AUGUST 29, 2016

Founders also had to do a little math on the new option pool to really understand what their ownership would be post investment, since it was typically taken out of the company pre-money. Most term sheets talked about the valuation in these terms, and you added the dollars invested to get a post-money valuation.

Post-Money Valuation 52

Post-Money Valuation Valuation Cap Table Term Sheet 52

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. Research your market. DO NOT start with product, start with the market.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

David Teten

DECEMBER 3, 2019

In liquid markets, most of the calories expended on technology and analytics are focused on trade selection, or “ origination ”. I use another live Google doc to maintain my database of companies I’m marketing to other VCs. 2) Market . Many tools designed for B2B marketing in general are also relevant to investors.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

www.instigatorblog.com

OCTOBER 23, 2010

Home About Contact My thoughts & lessons learned on startups, entrepreneurship, marketing and other stuff. You can’t have an option pool that takes up 50% of the company’s shares, and you have to leave room for future employees as well.

Equity 41

Equity Employee Startup Vesting 41

Berkonomics

NOVEMBER 23, 2023

Some rules about stock options and phantom stock: [Email readers, continue here…] The real insight here is that stock options or phantom stock are the tools of early-stage businesses used to attract great talent when there is not enough cash to pay market rates. a share, then options must be priced at that amount.

Equity 62

Equity Stock Options Vesting Early Stage 62

venturehacks.com

SEPTEMBER 22, 2011

You have to pay market rates regardless of the equity equation. You have to pay market rates regardless of the equity equation. And you have to pay a market rate no matter what the equity equation says. Say the equity equation tells you to pay a prospective hire above market. We have some additional thoughts. Summary: 1.

Equity 40

Equity Cap Table Valuation RSS 40

www.startupnorth.ca

OCTOBER 23, 2010

As Naval points out that you still need to pay employees market rates , but with all employees you need to ask yourself “whether she [a new hire] is likely to increase the next round’s share price”. Early employees have a huge impact on the growth and culture of a company. How do you compensate early employees?

Employee 41

Employee Founder Salary Equity 41

BeyondVC

MAY 20, 2004

In addition, I believe the unfair burden of stock option expensing falls on private companies-FASB even recognizes this. As for public companies, the market will adjust and look at numbers with and without option expensing, converging on what all other investors use.

Stock Options 60

Stock Options Stock Securities and Exchange Commission Option Pool 60

www.payne.org

SEPTEMBER 22, 2011

5 Stock vs Options. 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. As described previously, holding stock has a HUGE long-term gains tax advantage over having an option.

Equity 56

Equity Employee Vesting Preferred Stock 56

www.paulgraham.com

APRIL 28, 2010

As a company gets more established,its valuation gets closer to an actual market value. And since I knowfrom my own experience that the rule against buying stock fromfounders is a stupid one, this is a natural place for things togive as venture funding becomes more and more a sellers market. Theres only common stock at this stage.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

venturehacks.com

FEBRUARY 24, 2010

It’s more important than your product, market, and investors. 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. Build in founder vesting (a.k.a. Learn more.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

Berkonomics

SEPTEMBER 28, 2017

And then there are options: [Email readers, continue here…] Stock options or phantom stock are the tools of early stage businesses used to attract great talent when there is not enough cash to pay market rates. a share, then options must be priced at that amount. How many options are appropriate for a grant?

Early Stage 102

Early Stage Equity Stock Options Vesting 102

Both Sides of the Table

FEBRUARY 22, 2011

Maybe they wanted the branding associated with a hot company, maybe they wanted to work with the other investors around the table or maybe they thought it was a cheap way to get educated on your market – it’s always easier to learn an industry when you’re on the inside. These are all dumb reason to invest – of course.

Dilution 314

Dilution Cap Table Due Diligence Option Pool 314

thinkspace.com

SEPTEMBER 7, 2012

Marketing Intern. Chris Dixon wrote a blog post about “ The one number you should know about your equity grant “ The one number you should know about your equity grant is the percent of the company you are being granted (in options, shares, whatever – it doesn’t matter – just the % matters). Call Us: +1-855-629-6200.

Equity 62

Equity Employee Founder CTO Hire 62

Berkonomics

MAY 12, 2010

First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. a share, then options must be priced at that amount. In other words, you cannot create bargain options at below “market rates.” That size of grant would take much or most of the option pool.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

venturehacks.com

MARCH 21, 2008

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

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! How Content Marketing Can Help Grow Your Business in 2014 – crowdspring.co/1gNMc5E. How Content Marketing Can Help Grow Your Business in 2014 – crowdspring.co/1gNMc5E.

Social Media 93

Social Media Small Business Design Media 93

www.paulgraham.com

OCTOBER 23, 2010

Theyre responding to the market. Now that VCs have competitors, thats going toput a market price on the help they offer. Unless theressome huge market crash, the next couple years are going to be agood time for startups to raise money. Thats the fundamental reason the super-angels haveappeared.

Valuation 92

Valuation Stock Partner Founder 92

Both Sides of the Table

SEPTEMBER 1, 2011

Even if you’re super successful there will at times be dissent on issues like: Firing founding employees, increasing the size of the option pool, putting in place provisions about selling on secondary markets, agreeing controversial “bet the company&# strategic biz dev deals and the like. Not enough skin in the game.

Strategic Investors 312

Strategic Investors Los Angeles Cap Table Startup 312

The Next Web

AUGUST 14, 2013

But we had a solid product, strong weekly revenue growth (10% week over week), and two distribution/marketing channels that were already paying dividends. Many times, investors will come to you though – especially if you’re in specific markets that they are monitoring. Finding Your Investors. It certainly did me.

Founder 142

Founder Incubator Cofounder Accredited Investor 142