Remove Distribution Remove Hiring Remove Option Pool
article thumbnail

Introducing the Cap Table and Hiring the CTO

Feld Thoughts

This week they set out to create their cap table and hire a CTO. As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while. They come up with two options: Hire Praveena as an employee and offer her stock options.

Cap Table 133
article thumbnail

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

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
Insiders

Sign Up for our Newsletter

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

article thumbnail

How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? The one thing that I think is missing is distributing equity to every single employee in the company regardless of title. Title Range (%).

Equity 62
article thumbnail

Should You Share Equity with Consultants?

www.inc.com

Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We Create an options pool, if nothing more than in your mind, so you have some parameters to work within," Durkin says. Toshiba Laptops. We get notebooks.

article thumbnail

The Future of Startup Funding

www.paulgraham.com

The distribution of investors should mirrorthe distribution of startups, which has the usual power law dropoff.So In a traditional series A round, before the VCs invest theymake the company set aside a block of stock for future hires—usuallybetween 10 and 30% of the company. Theyrean administrative convenience.

Startup 93
article thumbnail

VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

ff Venture Capital hired two full-time engineers to build out Totem. The Long Term Stock Exchange is building out a set of tools for founders for managing their cap tables, 409A valuations, cash on hand, options pool, investor relations, etc. Fincura specializes in serving lenders. 11) Exit .

article thumbnail

Changing Equity Structures for Early Startup Employees

www.instigatorblog.com

I gave him similar numbers to what I had been given when I was hiring the first few employees for Standout Jobs. This is especially true when you think of a tech startup, where the first few hires are typically engineers/programmers. But I also told him that I though the numbers were wrong. .&# 1% is just not a lot.

Equity 41