Both Sides of the Table

MAY 9, 2018

I also had to negotiate a follow-on round at a portfolio company because new investors were trying to force a bit option-pool top-up that would dilute the founders and existing shareholders and existing investors were fighting over prorata rights. Wednesday I have 4 companies coming in to talk about their companies. That wasn’t you.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

Agile VC

APRIL 17, 2011

Kayak Software Corporation. 3) ITA Relationship: Much has been made of the fact that Kayak along with OTAs (online travel agents) license data from ITA Software which is now part of Google. Precise valuations are impossible to determine because of adjustments to employee option pools, possible buybacks of common stock, etc.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

View from Seed

DECEMBER 4, 2014

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. Ideation/IP. Sometimes, however, there’s an existing code base that one co-founder brings.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Agile VC

DECEMBER 4, 2014

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.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

www.inc.com

SEPTEMBER 24, 2011

Business Software. We had a rough time early on," says Parker, president and chief technology officer of Roving Software Inc. , Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. Human Resources (HR). Online Marketing.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Agile VC

DECEMBER 4, 2014

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.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

www.paulgraham.com

OCTOBER 23, 2010

Notes [ 1 ]In this essay Im talking mainly about software startups.These points dont apply to types of startups that are still expensiveto start, e.g. in energy or biotech. 13 ]Im not saying option pools themselves will go away. Make something people want"applies to us too. Theyrean administrative convenience.

Startup 93

Startup Valuation Non-Compete Deal Flow 93