Archives / September, 2008

Compensation In A Very Early State Company – Follow Up Question

(Brad) In response to the post Compensation In A Very Early State Company I got the following question: Q: If comp is at say 50% with 2x equity vesting over a standard term, then in 6 months a series A is completed and there’s more comfortable level of cash in the bank, salary can be renegotiated…

How Do I Do Multiple Closings for an Angel Round?

Q: How do I do multiple closings on a single round work? In our case, we have an investor wishing to give us  headstart, certainly I imagine not an uncommon case in friend and family scenarios, though here we’d have multiple rounds of angels, without kicking up the gears to flush out a full seed…

What Price Adjustments Do You See Prior To Closing In A Financing?

Q:  Can you please explain what sort of adjustments you should expect to the price that a VC promises in a term sheet between the signing of the term sheet and signing of a final stock purchase agreement (SPA)? A: (Jason)  To answer your question, we first need to determine what the definition of "price"…