ithacaVC

DECEMBER 13, 2013

They are typically pretty simple: (i) shares owned by founders and (ii) shares authorized for issuance in a stock option pool, some of which may be issued to employees already and some of which will be available for future issuance. And don’t forget that the options granted would come out of the available option pool.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

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? How much do they cough up?

Engineer 129

Engineer Dilution Option Pool Vesting 129

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

Hippoland

APRIL 10, 2016

But, Ada wants to split the equity 50% her, 20% Bob and 20% me with a 10% option pool. An active former co-founder has contributed to the product / sales / BD / or something substantial to the company on a day-to-day basis for at least a year. We are trying to decide how much equity to allocate to each person.

Cofounder 48

Cofounder Cap Table Equity Vesting 48

Scott Edward Walker

AUGUST 31, 2011

For example, he will explain to you how the liquidation preference works and run spreadsheets, if necessary, to show you how much money you will receive based on different sale scenarios; he will explain to you how the option pool works, including the founders’ significant dilution; and he will discuss what protective provisions are and other tricky (..)

Term Sheet 45

Term Sheet Silicon Valley Liquidation Preference Option Pool 45

Tim Keane

JANUARY 12, 2010

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. This results in a range of sale prices; in this example from $118.6MM to $21MM. This results in a range of sale prices; in this example from $118.6MM to $21MM. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

The Next Web

JUNE 15, 2012

After all, cash may be in short supply, but there’s a virtually endless amount of work to be done, from coding and web development, to PR, sales, general operations, or sage advice from an industry veteran. Many young tech startups reserve 15%-20% for employee stock options. It’s a logical solution.

Equity 116

Equity Stock Options Vesting Stock 116

David Teten

DECEMBER 3, 2019

I previously posted a detailed presentation with sales technology tools useful for B2B sales. Many VC funds rely on general-purpose CRM and sales funnel solutions like Copper , Pipedrive, Salesforce , Streak , and ZenDesk. We can use technology to make sales far more efficient. . She is a model for us all!

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Berkonomics

NOVEMBER 23, 2023

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if there is no interest, to outside investors. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.

Equity 62

Equity Stock Options Vesting Early Stage 62

www.startupnorth.ca

OCTOBER 23, 2010

The Adventure of a Lifetime 17 Pithy Insights for Startup Founders 17 Pithy Insights for Startup Employees Venture Hacks > Hiring Venture Hacks > Employees Venture Hacks > The Option Pool Shuffle Paul Graham > The Equity Equation [link] boris It's important to note that those options grants are AFTER a Series A funding.

Employee 41

Employee Founder Salary Equity 41

venturehacks.com

SEPTEMBER 22, 2011

Could you spend the remaining 10% on killer developers and sales guys? The Option Pool Shuffle. Is selling 30% of your shares to a top-tier firm the most effective way to spend your shares? What if another investor will give you the same terms for 20%? Should you take it? Could you spend the savings on great advisors?

Equity 40

Equity Cap Table Valuation RSS 40

www.paulgraham.com

APRIL 28, 2010

For example, VCs generally write it into the deal thatin any sale, they get their investment back first. Some VCsnow require that in any sale they get 4x their investment backbefore the common stock holders (that is, you) get anything, butthis is an abuse that should be resisted. So after this the option pool is down to 13.7%). [

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Berkonomics

SEPTEMBER 28, 2017

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

venturehacks.com

FEBRUARY 24, 2010

Be especially careful with the “sales&# guy here. 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. There are bounds to rationality. Learn more.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

www.payne.org

SEPTEMBER 22, 2011

Companies raise money by selling new stock after the board of directors authorizes the sale to investors. Companies allocate a pool of stock (usually called the Incentive Stock Option pool, or ISO pool) to grant to employees. Asking for preferred stock will usually peg you as a total novice. 1% ownership).

Equity 56

Equity Employee Vesting Preferred Stock 56

Berkonomics

MAY 12, 2010

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.

Early Stage 85

Early Stage Equity Stock Options Vesting 85