The Next Web

JUNE 15, 2012

From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. However, if you are thinking about compensating non-employees with equity, make sure to consider the following points: 1.

Equity 116

Equity Stock Options Vesting Stock 116

Up and Running

SEPTEMBER 20, 2021

For instance, the cap table will help you with various possibilities while running business activities like available options and pre-money valuations faster. This can be helpful when you are hiring a COO for the company, and the candidate asks to get percentage ownership in the company. Example of a cap table.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Hunter Walker

AUGUST 7, 2017

But employee option pool is important enough that I wanted to briefly expand upon my comment above. 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 96

Equity Pre-Money Valuation Option Pool Founder 96

Hunter Walker

MAY 7, 2014

Whether it’s adding capacity to an existing function (#MawrEngineers) or bringing new talents onboard (“we intend to make our first marketing hire”), glossing over these bullet points towards the back of the pitch deck would be a mistake. I’m interested in not just what these people will be doing but how and when they’ll be hired.

Hiring 111

Hiring Option Pool Early Stage Term Sheet 111

www.instigatorblog.com

OCTOBER 23, 2010

Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. His company had just closed an early round of funding and he wanted to cement the employee relationships. Those first employees will take 0.5-1%

Equity 41

Equity Employee Startup Vesting 41

Berkonomics

NOVEMBER 23, 2023

Options are usually best with “C” corporations but granting options for either LLC’s or “S” corporations are not a real problem. If there are 85,000 shares issued to the founders, then a plan calling for 15,000 shares in a pool reserved for future hires is appropriate, making the fully diluted shares 100,000.

Equity 62

Equity Stock Options Vesting Early Stage 62

Austin Startup

JANUARY 25, 2020

This was my time at a Wall Street firm that had hired me after I applied for their Junior Stockbroker position, a little while after I graduated from college. But before we got back to work, we had to hire a lawyer to help out with both the SAFE docs and to file our FORM D with the SEC so we can register our raise.

Delaware 62

Delaware SEC New York City New York 62

www.inc.com

SEPTEMBER 24, 2011

Employee Benefits. 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 a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. "We Business Taxes.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Berkonomics

SEPTEMBER 28, 2017

Options are usually best with “C” corporations, but granting options for either LLC’s or “S” corporations are not a real problem. If there are 85,000 shares issued to the founders, then a plan calling for 15,000 shares in a pool reserved for future hires is appropriate, making the fully diluted shares 100,000.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

venturehacks.com

FEBRUARY 24, 2010

The best sellers can sell to customers, partners, investors, and employees. 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. Geeks can always be hired.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

David Teten

DECEMBER 3, 2019

Point Nine Capital uses 15Five for continuous employee feedback. 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.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 5 Stock vs Options. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. From Payne.org Wiki. 2 Stock Classes: Common and Preferred. 3 Dilution. 4 Vesting.

Equity 56

Equity Employee Vesting Preferred Stock 56

www.paulgraham.com

APRIL 28, 2010

The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Theres only common stock at this stage.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Genuine VC

FEBRUARY 28, 2011

So optimizing a startup offer involves not just one key figure – salary – but also the option package. Nearly all startup employees receive a number of options figure in their offer. ” The details surrounding stock options are often complex and confusing for non-financially-oriented individuals.

Startup 121

Startup Equity Vesting Salary 121

techcrunch.com

FEBRUARY 25, 2010

You could make the same argument about acquisitions and option pools. As Mark Suster recently noted , employees will never see a big payday at most startups unless the company shoots for the moon. Why aren’t we surprised when three months later that company can’t hire enough engineers? Each executive gets $5 million.

Liquidation Preference 63

Liquidation Preference Founder Option Pool Acquisition 63

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

venturehacks.com

MARCH 21, 2008

Or they bring you a handful of great employees. Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options. The options typically vest monthly over 1-2 years with 100% single-trigger acceleration and no cliff.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

Scott Edward Walker

NOVEMBER 26, 2017

The way the investor thinks about it is that, if you can’t figure out your way to network your way to [an investor],… then you’re unlikely to be able to network your way into hiring a great team, or network your way into selling your product to customers. (at www.youtube.com/watch?v=NEOR0AJsziE. v=NEOR0AJsziE.

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

Berkonomics

MAY 12, 2010

If there are 85,000 shares issued to the founders, then a plan calling for 15,000 shares in a pool reserved for future hires is appropriate, making the fully diluted shares 100,000. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%. Director level employees are typically granted ½%.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

www.mattbartus.com

DECEMBER 9, 2012

You have a 20% option pool, so you know this will take your ownership down from 80% to 60%, and the VC will get 25%. Option Pool. Option Pool. What questions should I ask the lawyers I am considering hiring? Employees, Advisors & Consultants (12). Take a look at the numbers: Pre-Money.

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Warrant Valuation Pre-Money Valuation Term Sheet 40

venturehacks.com

SEPTEMBER 22, 2011

Paul says, “Whenever you’re trading stock in your company for anything, whether it’s money or an employee or a deal with another company, the test for whether to do it is the same. Consider the opportunity cost of spending shares on employees and investors. We previously posted a table of market rates for employees.

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Equity Cap Table Valuation RSS 40

www.startupnorth.ca

OCTOBER 23, 2010

Home Events Contact Jobs StartupIndex Founders versus early employees by David Crow on September 10th, 2009 in Resources Not everyone can be a founder. But for every founder, there is an early employee that takes near equal risks in joining an early-stage company. David Beisel We need to celebrate the employees at startups.

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Employee Founder Salary Equity 41