Equity

Employee Questions To Ask When Joining A Unicorn

Scott Belsky has a great post up titled Don’t Get Trampled: The Puzzle For “Unicorn” Employees. In it, he’s got a bunch of questions, along with detailed discussion, that you should ask your potential employer if you are considering a job at a unicorn (company with > $1b private valuation.) His suggestion is to strongly “audit your…

Bootstrapping with Brad Feld

Tom and Tony of tastytrade talk with Brad about Foundry Group, Techstars and Bootstrapping… Related articles Startup Life Interview With Sandy Grason The Kentucky Thesis How Is Your Q1 Going? ” Feld Thoughts Feld Thoughts

Issues with Equity Misalignment

Q: In our startup we have 4 founders, two of whom are not full time.  We’ve all put in a good sum of cash thus far.  The two founders with the least equity happen to be the two tech founders.  Some of us feel that we made a mistake when allocating shares in the beginning…

Do My Early Stage Investors Own Too Much Of The Company?

Question: Most VCs commented that they can not fund current cap table where the CEO and COO would get 10% equity once fully vested while the current investors have 80%. We talked to our investors and they have agreed to rework the cap table, however, I would like to understand from you what should I…

How Often Do Employees Of VC-backed Startups Get Stock Options?

Question: How often do venture-backed start-up employees (let’s say non-executives) get stock option grants? Besides the initial grant when they start, how often do “re-up” grants come? Should they be expected after further funding rounds? After significant accomplishments/promotions? Never? The short answer, at least in the US, is “most of the time.” It’s pretty standard…

Wenger: Presenting Option Grants to Boards

Today’s VC post of the day is from Albert Wenger (USV) and titled Presenting Option Grants to Boards. This is feedback I give to CEOs 98% of the time after my first board meeting. While there is no standard for how to present option grants, Albert lays out a very clear set of eight pieces of…

Is Dilution Considered When Talking About Equity Ranges?

Q: When we talk about the equity percentage numbers for those directors and other early participants, are these numbers based on the total number of shares prior to a funding event or does the base share number include those allocated for investors as well? As the shares for future investors are hard to predict, I…

What Happens to Unvested Options in a Merger?

Q: I work at a startup in the valley, and I’m wondering what happens to unvested shares in the event of acquisition? I.e., should I expect that they are canceled, accelerated, or stay on the same vesting timeline? A:  (Jason)  The answer is “all of the above.”  Any of these are potential outcomes in an…

Equity Comp in Turnarounds and Consolidations

Q: I thought i’d ping you on your thoughts regarding the non-cash compensation for key executives in strategic plays that aren’t strictly early-stage.. as an example, how would you structure your framework in providing equity comp to key executives in strategies involving turnarounds, consolidations and roll-ups etc. A: (Brad): Equity comp for turnarounds / consultations…