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Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. as his "retail" price. Let's run through an example.

Equity 391
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Is Convertible Debt Preferable to Equity?

Both Sides of the Table

I’ve written about the topic of convertible debt at length before specifically about how angels & entrepreneurs should think about pricing. Convertible debt is an investment that “converts&# into equity in the future usually at a discount to your next funding round price and sometimes has a “cap&# (maximum price).

Equity 319
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Careful about equity and options in early stage businesses

Berkonomics

For those negotiating equity allocations it covers some of the most complex issues to address in the process. Equity is divided between the founders and the business begun. How about the price per share? The price per share for option grants is also an important consideration. This post is longer than usual.

Equity 256
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Should Investors in the Same Round of Financing Ever Get Different Prices?

Both Sides of the Table

I recently wrote about my views that startups rounds should be priced. Fred, who also wrote his views about convertible debt (significantly more succinctly than I) believes that the price of a single round should be the same for everybody. Price the round. You can do it with equity & a price. And a few others.

Pricing 294
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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

This time by the efforts of Adeo Ressi to introduce a new kind of structure called “ convertible equity.” My initial reaction to Adeo when we spoke was that while it may have solved some issues (debt versus equity) it didn’t solve the ones that I’ve been warning entrepreneurs about most loudly.

Startup 354
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Equity is the currency of early stage businesses.

Berkonomics

Equity is divided between the founders and the business begun. Each grant to new or existing employees must be approved by the board before issue. The price per share for option grants is also an important consideration. a share, then options must be priced at that amount.

Equity 213
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TrueCar Prices IPO

socalTECH

Santa Monica-based TrueCar has priced its IPO, saying last night that it will sell 7.8 The pricing was below the company''s earlier, estimated IPO range of $12.00 The company offers up online pricing of news cars as well as powers affiliate car buying programs. million shares of its stock at $9 per share. in the IPO offering.

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