article thumbnail

Remind Me Why I Love You? (Why “In Person” is Everything)

Both Sides of the Table

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.

article thumbnail

Why offering employee equity is crucial for your startup

The Next Web

In one instance, I told a CEO that we typically recommend a 15 percent stock options pool at seed/Series A stage. This story continues at The Next Web. The post Why offering employee equity is crucial for your startup appeared first on The Next Web. She rolled her eyes in disbelief. When I try to illustrate that this.

Equity 154
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Doing Deals – 3 Tips for Entrepreneurs (Part 2)

Scott Edward Walker

They understandably get excited as soon as some money is waved at them and often allow themselves to get drawn into the dealmaker’s web. It is critical that entrepreneurs understand this dynamic.

article thumbnail

Entrepreneurs: Your instincts are always better than bad advice

The Next Web

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
article thumbnail

Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

Company Y receives an offer from an angel or ‘unsophisticated’ smaller VC fund that is unwilling to lead and price the equity but wants to ‘invest now’.

article thumbnail

5 Tips for Raising a Venture Round

www.readwriteweb.com

It's not just a best-of list, it's also a collection of posts that examine the fundamental issues that continue to shape the Web. We hope you enjoy reading them again and we look forward to bringing you more Web products and trends analysis in 2012. Happy holidays from Team ReadWriteWeb! Tip 1: Make Sure You Are Ready to Scale.

article thumbnail

The Option Pool Shuffle

venturehacks.com

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: