The stock-options tag has no wiki summary.
7
votes
2answers
257 views
OK to issue options before the first financing round?
For a small startup, I'd like to give options to members of an advisory board and one other person. However, one of my lawyer friends says to wait until after the first round of financing to give ...
7
votes
2answers
4k views
What is an appropriate stock option grant for a senior engineer after the Series A?
I'm looking for suggestions as I'm considering an offer from a startup.
A friend of mine is founding a software startup together with two partners and he's looking for engineers. The idea is ...
6
votes
5answers
1k views
Stock options for a senior engineer at an angel funded startup?
I joined a startup 6 months after its founding as a junior engineer (I was right out of college at the time). I've been with the startup for almost 6 years now, and I've progressed to the point of ...
6
votes
3answers
3k views
How much in stock options should we offer new employees?
We're a software startup with annual revenue in the ballpark of half a million. We're completely bootstrapped, and have no current plans to take funding. We currently have 4 employees. We're ...
6
votes
3answers
148 views
Series B Startup unwilling to disclose total shares
I have an offer from a series B startup that includes number of shares but no mention of value of each share or total shares (so I can compute a percentage). I asked and they were unwilling to ...
6
votes
1answer
177 views
Review offer for being employee #1
I've just been offered a developer job at a startup in the current situation.
- Pre-Series A.
- Current seed funding gives them a valuation of $5 mil.
- 4 founders, no employees, 1 founder is a ...
5
votes
3answers
2k views
Asking for equity vs stock options as employee
As an employee at an early stage start up company , what are the benefit of stock option vs equity?
It seems to me like equity is far preferable , but is there any advantage to stock option over ...
5
votes
2answers
144 views
VC Option Shenanigans
My company is being acquired by a public company (both US based). When we were all hired, our employment contracts stated we'd be granted x number of stock options. I'll say 250,000. That was 3 ...
5
votes
1answer
153 views
Advice on an offer from a start-up
i have been offered a position in a start-up...i was initially told that my 100,000 share options were 0.25% of "the allocated shares".
In my own research i came across terms for "diluted stock". ...
5
votes
2answers
195 views
What happens to the unused portion in an option pool at the point of an exit/acquisition?
Some details regarding my company:
I started off as a single-founder bootstrapped company (100%-owned).
Later I brought in two co-founders at 20% equity each.
So equity split was:
Myself - 60%
...
4
votes
5answers
308 views
Prevented from seeing stock option plan
I've been working for large private software company (the last round of investment was very, very large) and my offer letter told me I would receive X number of options as long as the board approved ...
4
votes
2answers
241 views
Is this a fair CEO offer for an experienced CFO/COO
My question/story is this: two years ago I broke ground on a startup. We planned and planned, raised some funds and broke ground writing code. Two years later we put $250k into the business, have ...
4
votes
2answers
494 views
Why did Facebook stop giving out options in 2007 and start giving out RSUs (restricted stock units)?
Generally, I'm asking, what advantage did the company see in switching to RSUs over options?
4
votes
1answer
114 views
Advice on measuring participation of a new company
I am creating a new startup, the startup is going to consist of 4 members and I need some advice on how to split the participation etc. Here is a brief description of each member and there role.
...
4
votes
2answers
736 views
Unvested shares
Let's say a Founder currently owns 100% of the company but wishes to offer 10% of the company to a part-time contributor. He offers a 4-year vesting period to that contributor with a 1-year cliff.
So ...
3
votes
3answers
3k views
Can I exercise stock options in a privately-held startup?
My options (ISO's) in a privately-held (VC-funded) startup are slowly but surely vesting. Can I exercise the vested options? What does it mean to exercise options in a privately-held company? If ...
3
votes
3answers
1k views
What is founder's stock?
What does it mean when a consultant ask for founders stock in a pre-funded startup for payment? Is it a special class of stock? Is it non-dilutible?
3
votes
2answers
268 views
Evaluating a “Promise” from a startup company for pay raise, benefits, stock options within a specified period of time?
I would appreciate any advice based on a current situation that I am in that I think a lot of people involved in startups (especially developers) find themselves in at some point.
Basically, I'm in a ...
3
votes
5answers
268 views
What is the best way to adjust options?
Me and my partner are about to start a new startup. I'm much more financially prepared than he is so we've agreed on the following structure.
I would fund the company with half a million for the ...
3
votes
4answers
185 views
Co-founding with someone I don't know very well
I am starting a company without enough money to pay a second person a salary, but I need the help. I've found someone who seems great - his previous work is beautiful, he has already done some good ...
3
votes
3answers
821 views
Founder's Stock - Class F Common
I've first heard of this special class of stock through The Founder Institute. It's basically a way for founders to protect from dilution by authorizing both Common stock and a special Class F (for ...
3
votes
2answers
822 views
Stock Options for VP of Sales?
What is the 'typical' percentage of stock options for an incoming VP of Sales for a $5M software start-up? 1% 2%?
3
votes
1answer
303 views
Are there any reasons I can't issue options to foreign contractors?
My company is a U.S. C-Corp and we have recently created a stock option plan that allows for both ISO and NSO option grants. We have a foreign contractor located in China who does work for the company ...
3
votes
2answers
262 views
If a successful startup's CEO makes what I believe is a low offer for employment as CTO, how can I make an effective counteroffer?
Over the past ten months, I've been working with a startup in a technical capacity as a contractor. Prior to my joining, they had a rocky start and spun their wheels for a while with an outsourcing ...
3
votes
1answer
189 views
Is story on how Skype employees stock options end up being worthless on acquisition common or not?
This is in response to the latest story about how Skype stock options are worthless:
http://blogs.reuters.com/felix-salmon/2011/06/24/upgrading-skype-and-silver-lake-to-evil/
3
votes
3answers
280 views
Rights of Non Qualified Stock Options
If an employee is given a Non qualified stock option, does this entitle him to any percentage of ownership in the company? For example, an employee is given 51% of the Non qualified stock options, ...
3
votes
1answer
74 views
Taking Stock in Clients
All,
I run a contract engineering firm, and I'm considering taking stock in some of my clients in return for reduced rates. I feel comfortable doing this given the continued level of income from that ...
3
votes
2answers
646 views
What are the differences of offering Incentive Stock Options or Non-qualified Stock Options to Employees?
I remember at one point a startup will switch from offering ISO (Incentive Stock Options) to offering Non-qualified Stock Options (NSO) to employees?
Can the startup decide which to offer, and what ...
3
votes
3answers
555 views
Need advice on Startup Equity Distribution for a Social Network Website
I an a technical guy, plans to goes full time for a startup to build a social network site, with a friend who is a business guy. Initially, he will work for part-time until our startup is enough to ...
3
votes
5answers
3k views
How can you insure that your percentage of ownership is diluted at the same percentage of the founders?
I understand when our company raises a fund soon, my share will be diluted. But how can I insure that my diluted percentage is the same as the founders
Currently, I own 2.5% of the company. I am not ...
2
votes
6answers
531 views
Considering an offer from a startup, two different compensation packages. Advice?
A bit of background: The two founders are guys I used to work with before our previous employer (a SaaS company) was aquired back in 2010. One of the founders was a senior sales exec and the other was ...
2
votes
4answers
603 views
stock options or convertible notes?
I will be joining as a senior developer on a startup and I will be working 20 hours a week remotely. I have a day job which pays my bills now.
The company is not funded yet so we will not be given ...
2
votes
2answers
231 views
Can the total number of stocks in a company change?
I was discussing doing some work for shares in a startup when the owner mentioned something interesting.
Basically I would be given X shares for my work and with the current number of stock that came ...
2
votes
4answers
231 views
I am the only paid developer in a startup, am I getting enough equity?
I am currently apart of a very small startup. I love the idea and believe that it could be very big one day. I was hired by a guy with the idea, but the idea was still very basic, and 1 dimensional. ...
2
votes
6answers
2k views
How many shares of stock to create when starting a company
I am thinking of creating a startup and want to allocate stock to various co-founders. Is there any sort of system for knowing how many shares to create of a new company?
2
votes
5answers
612 views
What questions should I ask about stock option grants?
What are the right questions to ask when someone is providing stock options as a form of partnership?
2
votes
3answers
883 views
How do I evaluate a job offer as a software engineer?
I got a job offer from a startup with about 70-80 engineers. I'm a fresh PhD. I'm getting about 0.01%. What percentage of stock options would be a fair price? They gave me a good base salary upfront, ...
2
votes
4answers
2k views
Incentive Stock Options (ISO Pool) - How much to earmark?
Based on your experiences, I'm wondering if any of you had any advice on the percentage can I expect to earmark for ISO pool when incorporating? 10%? 15%? 20%?
Thanks!
2
votes
1answer
87 views
Non-Dilutable Stock for patent purchase
I currently hold a patent and I'm looking to possibly sell it to a company for 5% stake.
I have interested investors in the idea, but need to move the patent into their company. The company's ...
2
votes
4answers
770 views
How to determine the worth of stock option?
Say I was given an incentive stock option for X number of shares at an exercise price of Y per share. The shares vest over 4 years. How do you determine the worth of this stock option?
A) What is the ...
2
votes
3answers
412 views
Valueless stock options on exit
A friend of mine is at a startup, and the startup is having a big exit. It is being bought by a large company. Everything sounds great, except... he has only unvested stock options and under the ...
2
votes
2answers
59 views
Receiving non-qualified stock options before a startup has a valuation
I've been reading that under 409a regulations, if non-qualified stock options are issued below fair market value, there are immediate tax implications and a 20% penalty. I've been working part-time ...
2
votes
1answer
193 views
Can a UK Limited company (with standard articles) issue options?
I am about to start a limited company, myself and the other initial shareholders wish to be able to grant options to individuals who contribute significantly.
We understand that we can't issue shares ...
2
votes
1answer
600 views
Company got acquired — what might happen to my stock options? (not an employee yet)
A private company that I accepted a job offer with, got acquired by a public well known company. I should start there on June 1, 2011. They notified me that the offer is still valid.
The offer says:
...
2
votes
1answer
239 views
Stock Option Plan for Contractors?
I'm starting my first company (software for Reputation Management) and will be contracting 3 guys; 2 full-time paid and 1 who is doing work pro bono. As it happens in the early stages of companies, ...
2
votes
3answers
998 views
Amount of vesting equity for #3-#4 employee?
Given a startup with 2 founders (one technical and one not-so) that's received VC funding (few millions).
How much vesting equity (%) should the next couple of developers recruited expect?
I've ...
2
votes
1answer
74 views
What is considered “generous-stock-options” for a start-up company in its early days?
We are a young startup, founded by 3 members about a year and a half ago, and recently closed a seed-stage investment round.
We are about to hire our first 3 employees, 2 tech, 1 ...
2
votes
1answer
204 views
Evaluating a “co-founder” offer
I was presented with the following offer and while I'm waiting legal advice, I'm interested to know your opinions.
I'm been offered a "co-founder" seat with a bit over 10% in stock options vested ...
2
votes
1answer
150 views
Have you setup an options pool for your S-Corporation? Is it allowed?
My S-Corp didn't have an options pool when we first set it up. I'm now thinking of creating one (15% of total) to fix that as a talent incentive mechanism. My accountant said that C-Corps have no ...
2
votes
1answer
288 views
What happens when in the money stock options are exercised?
If the company is liquidated and options are in the money, what are the mechanics of obtaining stock?
Who receives the exercise price that is paid? If this exercise amount is received by the company ...
