Both Sides of the Table

JULY 22, 2010

I’m not sure I really even need to write this at length because Nivi absolutely nailed the topic in his article “ The Option Pool Shuffle.&#. When I went to raise money in 2006 I thought I knew every term in a term sheet but somehow I still got a bit duped by the option pool shuffle. No option pool shuffle.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Hunter Walker

AUGUST 7, 2017

But employee option pool is important enough that I wanted to briefly expand upon my comment above. As you can see, Weekend VC Twitter gets pretty wild and crazy!!!! While you should expect these sorts of hires to take below market cash comp versus what Google is paying them, this tradeoff needs to be replaced with equity upside.

Equity 115

Equity Pre-Money Valuation Option Pool Founder 115

Both Sides of the Table

FEBRUARY 22, 2011

When you consider that they’ll also want a 15-20% option pool in the company you’re talking about founders owning as little as 40% after just one round. They aren’t people who are going to demand minimum ownership %’s.

Dilution 314

Dilution Cap Table Due Diligence Option Pool 314

David Teten

DECEMBER 3, 2019

Tim Friedman, Founder, PE Stack , said, “If I could offer one piece of advice to today’s managers, it would be to take the time to understand the demands of the modern institutional LP. For our content creation, we use tools such as Canva (graphic design) and GoToStage (webinars platform) to create and share content for prospects to find.”.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Tim Keane

JANUARY 12, 2010

  The right of first refusal for all of a future financing is a very unfriendly provision to entrepreneurs that can make future financing all but impossible.   ·       Conditions Precedent mean that the closing of the proposed offering is subject to the conditions specified here.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

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

www.paulgraham.com

OCTOBER 23, 2010

5 ]In a series A round, you usually have to give up more thanthe actual amount of stock the VCs buy, because they insist youdilute yourselves to set aside an "option pool" as well. Valuation However, the VCs have a weapon they can use against the super-angels,and they have started to use it.

Valuation 92

Valuation Stock Partner Founder 92