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
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 […]
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 […]
Read more
Generic Range of Equity Desired By a VC for Round 1 or 2
Jason and I welcome Matt McCall from DFJ Portage as today’s guest VC blogger. We sent Matt one of our backlog questions – his response is below. Matt also posted it on his excellent blog under the title How VC’s Determine % Ownership Thresholds. Question: What’s a completely generic range of equity a VC typically […]
Read more
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 […]
Generic Range of Equity Desired By a VC for Round 1 or 2
Jason and I welcome Matt McCall from DFJ Portage as today’s guest VC blogger. We sent Matt one of our backlog questions – his response is below. Matt also posted it on his excellent blog under the title How VC’s Determine % Ownership Thresholds. Question: What’s a completely generic range of equity a VC typically […]
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