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
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 […]
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How Much Equity Should I Get In My Startup?
Question: As a start-up with no history and no customers (we haven’t launched yet) how do I figure out how much equity to assign to myself as the founder? I have spent the last one year developing and writing the business plan. I hired two consultants both MBA’s with real world experience to help in […]
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What’s A Reasonable Starting Point For An Option Pool?
Q: In modeling out an early-stage deal, do you think it would be reasonable to start with a 20% option pool (Round A) and then plan to refresh that on subsequent rounds (ie, make an assumption about having key hires in place by round C or B)? Or should we just allow that option pool […]
Read more
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 […]
How Much Equity Should I Get In My Startup?
Question: As a start-up with no history and no customers (we haven’t launched yet) how do I figure out how much equity to assign to myself as the founder? I have spent the last one year developing and writing the business plan. I hired two consultants both MBA’s with real world experience to help in […]
What’s A Reasonable Starting Point For An Option Pool?
Q: In modeling out an early-stage deal, do you think it would be reasonable to start with a 20% option pool (Round A) and then plan to refresh that on subsequent rounds (ie, make an assumption about having key hires in place by round C or B)? Or should we just allow that option pool […]
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