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You can find a good start-up lawyer to help or if you want to do it on the cheap there are tons of websites you can find on the Internet to help. Assuming normal valuations at fund raising rounds you’ll be down to 6-12% after you’ve created a stock-optionpool and raised capital. Pick the founding members.
You don’t really need to worry about how much common stock will be set aside for an employee optionpool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division. Sometimes, however, there’s an existing code base that one co-founder brings.
You don’t really need to worry about how much common stock will be set aside for an employee optionpool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division. Sometimes, however, there’s an existing code base that one co-founder brings.
Internet and Online Business. If youre offering the consultant stock options, youll also want to take into consideration what the exercise price is going to be and how long the options will be outstanding. Create an optionspool, if nothing more than in your mind, so you have some parameters to work within," Durkin says.
I know that a lot of VCs had roadkill in the Internet Video 1.0 When you consider that they’ll also want a 15-20% optionpool in the company you’re talking about founders owning as little as 40% after just one round. I have personally seen some VCs who decide not to support certain industries they once had backed.
You don’t really need to worry about how much common stock will be set aside for an employee optionpool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division. Sometimes, however, there’s an existing code base that one co-founder brings.
Meyler Capital is taking the analytical rigor of modern internet marketing and applying it to fund marketing. . The Long Term Stock Exchange is building out a set of tools for founders for managing their cap tables, 409A valuations, cash on hand, optionspool, investor relations, etc.
At a $1 million, pre-money, with an investment of $500K, that would leave 67% of the company for the founders and initial optionpool. Keeping this simple with no employee optionpool and just founders and investors, investors would hold 60% at this point (20% for angels and 40% for VCs) and founders would have 40%.
And for the love of high-speed internet and all things Web 2.0, Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder.
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