Today’s Great VC post of the day is a long, detailed example of How Equity Dilution Works by Ken Gaebler.
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Equity Dilution Math
Today’s Great VC post of the day is a long, detailed example of How Equity Dilution Works by Ken Gaebler.
More blog posts
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 […]
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What Percentage of A Company Does a Typical Entrepreneur Own at Exit?
Q: On average, what percentage of a company does the “typical” entrepreneur own by the time of a “successful” exit? Obviously, huge YMMW, but what’s a reasonable expectation, say, assuming two founders, middle-of-the-road terms from investors, two or three rounds of funding, and an acquisition? Or is the range so broad as to be meaningless? […]
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A Founders View on Stock Vesting
(Brad) Dave Naffzinger has another excellent post up on Startup Stock Options titled Vesting Schedules & Acceleration. I’ve written about vesting plenty of times and gotten plenty of comments thanking me for the VC view but suggesting that the entrepreneurs view might be different. Dave is a co-founder and early employee of several companies – […]
Read more
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 […]
What Percentage of A Company Does a Typical Entrepreneur Own at Exit?
Q: On average, what percentage of a company does the “typical” entrepreneur own by the time of a “successful” exit? Obviously, huge YMMW, but what’s a reasonable expectation, say, assuming two founders, middle-of-the-road terms from investors, two or three rounds of funding, and an acquisition? Or is the range so broad as to be meaningless? […]
A Founders View on Stock Vesting
(Brad) Dave Naffzinger has another excellent post up on Startup Stock Options titled Vesting Schedules & Acceleration. I’ve written about vesting plenty of times and gotten plenty of comments thanking me for the VC view but suggesting that the entrepreneurs view might be different. Dave is a co-founder and early employee of several companies – […]
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