The stock-options tag has no wiki summary.
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2answers
373 views
How can early startup employees ensure that founders do not intentionally dilute them?
I am considering joining a startup as employee #2. I expect to receive some equity (either stock or options).
Is there any way in which I can protect myself against the founders simply issuing ...
2
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1answer
322 views
C Corporation single shareholder / highly-compensated employee limitations?
If I'm a single shareholder/owner and employee of a C Corporation, am I limited from taking any deductions due to being a highly-compensated employee (due to share ownership)?
2
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1answer
323 views
Non Voting Stock in an Acquisition
This might be a UK specific question - not sure if the same applies in the US...
I have a number of 'B Class' shares in a company that, at some point, could be acquired. These B Class shares have no ...
2
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2answers
286 views
Would Skype's stock buyback plan be as evil if they paid fair market value?
Skype's buying back of stock options at the exercise price is pretty evil, no doubt. But is it equally uncommon for a company to put in conditions allowing them to buy back vested stock at fair ...
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5answers
2k views
salary and stock options in a startup for lead developer - advice needed
I got an offer from my friend in a startup company with $30K/year (take into account it's not in a "hot" spot like Silicon Valley or NY, but yeah, it's not high in any standards, and the job's in a ...
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3answers
221 views
Joining startup question on salary
I've been approach by a startup to join them. I'm currently making 80k USD as a developer, not knowing much about the startup world. What would you consider a reasonable offer from them? Knowing they ...
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4answers
381 views
Having trouble dividing the pie w/ my partner, care to help cut the slices?
On January 15 a buddy of mine (who is not technical with a full time job in the social gaming/payment space) came to me (an independent Web Strategist SEO/Social Media looking for my next big thing) ...
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2answers
410 views
Zynga stock options story and damage to startup community
Zynga is requiring some employees to give back their stock options or they will be fired (cnet.com)
It seems like with this approach Pincus made start ups vastly more risky for people to join. In ...
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3answers
201 views
How can an Advisor be rewarded if there's not a VC round or Sale down the line?
A guy who's help our SaaS startup a lot in the 1st 2 month of its life has suggested that we form and he join our Board of Advisors. He's very helpful to us, a great guy and will definitely be an ...
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3answers
146 views
Is a company allowed to overcommit stock options?
Here's an example, just in case the question isn't clear.
20 employees, 20 million shares in option pool.
Each employee is given 2 million shares with standard terms (1 year cliff, 25% vesting on ...
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1answer
638 views
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2answers
425 views
Who owns the Stock/Options Pool?
Wondering who owns stock/options pool before they are given out, e.g. in case of vesting. The company? (if yes, can an LLC own stock/options?), or the investor?
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4answers
41 views
Non-dilutable options
I have an entity I've been working on for roughly 4 years, the last being a real push to get it out the door. A student recently joined me and got us into a student business plan competition and we ...
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2answers
263 views
How dividend payments work?
So let's make an example story:
I'm the founder and the only developer of a web startup. Currently there is no one else other than me in the company.
I've added a sales guy, wishing to give him ...
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4answers
523 views
How to set Option Exercise Price?
I just incorporated a Delaware C Corp a few months ago and have no significant activity yet.
I have 2 Advisors that I need to issue options to, and my question is how do I set the option exercise ...
1
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1answer
65 views
Stock options at 250 employee+ pre IPO tech company
I have been offered a job at a pre IPO company for X shares at some Y price. I was told that these stocks will be worth around 8x at the time of IPO.
How is the value of these stocks determined? What ...
1
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1answer
108 views
Tax exposure for receiving/ exercising warrants for startup advisor who is a non-resident alien
I am about to become an advisor to a startup based in the US. I am a non-resident alien and the advisory work is carried outside of the US. Compensation will be in the form of performance based ...
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1answer
111 views
Startup equity for employee - real stock or option
For an earlier employee (not C level title), is it common to pay via option instead of real stock equity?
Assume both need to suffer from 4 year vesting schedule with 1 year cliff.
1
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1answer
194 views
Where can I find detailed information about a company's stock structure prior to their IPO?
I'm curious to know about the stock structures of a lot of companies. For example Marc Pincus of Zynga has preferred stock, where each of his share's voting power is 70x greater than those that are ...
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1answer
186 views
Stock option plans in Germany for Gmbh startups
Does anyone know if German startups (Gmbh) can offer employees a stock option plan?
As I understand, public companies in Germany can only offer options with a minimal vesting period of 4 years, which ...
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2answers
126 views
Can you issue a Convertible Note to be converted prior to series A?
Situation:
Closed initial kick-start seed investment with angel investor. Deal was done on an equity basis equaling a postmoney valuation of 400k.
Have a few FFF who would like to invest small ...
1
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2answers
163 views
What should I expect for compensation in an “equity for compensation” deal?
Similar to this question: Amount of vesting equity for #3-#4 employee?
But it seems to discuss what equity paid developers should expect. If I am a developer that is unpaid, what would be a ...
1
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1answer
81 views
I don't understand tax obligations on options
Here's the situation:
two founders each own 50% of the company
angels / VCs / FFFs are about to invest
the company will set up a 10% options pool for new hires
When a new hire starts, how do taxes ...
1
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1answer
278 views
How does option pool size at the time of incorporation impact valuation and funding
Suppose someone needs to incorprate a C-corp, for a high tech high growth business.
How does option pool size at the time of incorporation impact valuation and funding. Or it only matters how ...
1
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1answer
55 views
Issues around accepting salary plus stock options in job offer
I've been offered a job within a new SaaS startup. I'd be the first technical hire. They've offered to match my current salary and give me 2.5% stock options. Or I take a couple of £K extra with no ...
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2answers
233 views
Keeping track of shares, options, etc in a corporation?
What software is available to keep track of who owns what shares and stock options once I incorporate?
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3answers
334 views
What will happen if an individual invest in the company before it goes public?
Lets assume the example of Groupon which is going to be public this year or next year.Suppose if someone invests $100Million in the company,will its valuation increase for the individual or for its ...
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2answers
82 views
A Question on Stocks
I'm generally interested in how economy works, because i think it closely relates to businesses. I would like to ask something about stocks. Imagine that there is a company with 100 stocks. Now, the ...
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2answers
164 views
Stock equivalent options if the company is self funded and does not intend to go public
I run a company that’s self funded and does not intend to go public (this might change due to the nature of the business).
I have started to experience scale and traction, which means that I will ...
0
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1answer
122 views
Received ISO grant date a year after vesting date (start date) and therefore higher strike price than was at start date
I'll try to make this simple:
I started at my startup over a year ago, apx 6 mos before we raised a second round of funding (helping with this was a big part of my hire), in my offer letter I was ...
0
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1answer
171 views
dilution of stock options for a company going through multiple rounds of funding?
How can I have an idea of the dilution of employee stock options for a company that is going through different rounds of funding?
For example, a company that has received a total of $100M funding up ...
0
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1answer
69 views
What is a typical contract for employee's who want to work on a start up but get paid through future earnings?
I am thinking of bring someone on board to develop an application. I don't have money to pay him right now, but would like to structure something that would make it an worth while to developer the ...
0
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2answers
256 views
0.5% equity and 2k/month to be the #1 CDO in a startup
I really need your help.
It 's the first time I've been asked to work for a startup.
The company has already been made, founded by 2 partners, and has already received an initial investment, but has ...
0
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1answer
100 views
Employee Stock Options Plans effect on SEC Registration Requirements
Companies that have $10 million in assets and 500 shareholders of record are currently required to register with the Securities and Exchange Commission (SEC) and are thus subject, among other things, ...
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2answers
174 views
Event of a sale prior to vesting schedule completion
Starting to work with our legal team and its time to expand the team. A few questions on the vesting schedule.
Employee 1: CFO position
I am bringing in a CFO from a financial background with other ...
0
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1answer
39 views
Can some wealthy investor invest or can have a deal with the compeny before it goes public?
Well I just had a question in mind that a wealthy investor invest his money in any IPO before it goes public.Said that I am referring through recent Goldman Sachs and Facebook deal worth $450 Million ...
0
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1answer
200 views
Popularity of restricted stock?
Several newbie questions for restricted stocks...
Is it common for seed fund to invest in restricted stock?
Is it common to issue restricted stock to cofounder?
Is it common to turn option to ...
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1answer
1k views
What is considered the “grant date” of vesting stock options
I have some options to buy stock in my startup, and they are vesting merrily. When tax regulations discuss "two years after the grant date," is that the date we signed the contract, or the date each ...
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0answers
68 views
How much Equity should I get? [duplicate]
Well some think its a duplicate to another question but i think its different cuz all four of us in the team are not the coders, developers or programmers & also my question is different cuz the ...
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0answers
155 views
Restricted Stock Units (RSU) in a job offer
I've seen a few job offers where in addition to the salary the company offers X,000 Restricted Stock Units (RSU). I'm still trying to understand owning equity as one of the early employees for a ...
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0answers
48 views
Option Grant Expires Soon but can't afford price. Workarounds?
I have a fairly large ISO grant that was awarded to me fully vested a month before I left the company (didnt find out specifics about it til after I left.) I have three months to exercise my options ...
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0answers
33 views
Series A-funded company sold off part of business, new distribution to employees. Should I exercise/sell my vested options?
Startup already received Series A funding. I have a minor amount (around 1,500) of vested options at a roughly $3.25 strike price. New valuation post sale of part of business is around $8.50. As part ...
0
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1answer
66 views
Structuring a stock earnout on start-up?
We are contemplating a start-up with 2 main founders, who will put cash in and work in the business, and 2 angel investors who will only put in cash.
The way we want the ownership to work out is:
...
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0answers
188 views
As an Early Employee | Equity vs ESOP? and how much?
I have been working in a startup for quite some time now. Recently they have raised seed capital so now going to formalize stuff. They have given me an option to choose between Equity or ESOPs.
I am ...
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1answer
61 views
Best way to commercialize a software
My associates and I own a services business. To improve efficiency we started to developed own software two years ago. The software we developed seems to be very effective and time-saving for us and ...
