www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. 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 Start-up | Mondays. Technology | Thursdays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

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 112

Hiring Option Pool Early Stage Term Sheet 112

Both Sides of the Table

JUNE 5, 2015

I am reminded of this problem every time my firm does a financing where a note went before us but more specifically I was reminded by this great post by Brad Feld to talk about the pre-money vs. post-money conversion issue. So how DOES a VC think about financings at early stages? How much is in the option pool?

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

venturehacks.com

MARCH 21, 2008

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. Many advisors want options they can exercise immediately —that’s fine.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

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 97

Equity Pre-Money Valuation Option Pool Founder 97

www.instigatorblog.com

OCTOBER 23, 2010

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

Equity Employee Startup Vesting 41

David Teten

DECEMBER 3, 2019

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. ff Venture Capital hired two full-time engineers to build out Totem.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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

Seeing Both Sides

JULY 15, 2009

VCs have an unfair advantage when it comes to financings. A typical start-up company will do 2-4 venture capital financings before a successful exit (or, conversely, an ignomious ending). In contrast, the typical venture capitalist, either individually or across their partnership, will do 5-10 financings in any given year.

Pre-Money Valuation 49

Pre-Money Valuation Option Pool Stock Options Post-Money Valuation 49

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

techcrunch.com

FEBRUARY 25, 2010

You could make the same argument about acquisitions and option pools. Why aren’t we surprised when three months later that company can’t hire enough engineers? The 3-person executive team, including a CEO if one was hired, owns 10%, and splits $3.6 The remaining $36 million is divided according to equity ownership.

Liquidation Preference 63

Liquidation Preference Founder Option Pool Acquisition 63

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

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. I just worked on a financing for a company that received a term sheet from a group of VCs at a $7 million pre-money valuation. Post-Money. Series A. -.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

thestartuplawyer.com

FEBRUARY 24, 2010

About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Who must be a co founder and who can remain a hired principal? Who must be a co founder and who can remain a hired principal?

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

www.payne.org

SEPTEMBER 22, 2011

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. At a minimum, do your own personal finance homework so you know how much salary you need to live and not spend your savings.

Equity 56

Equity Employee Vesting Preferred Stock 56