Comments on: The Option Pool Shuffle

By: Quora

Quora — Wed, 23 Feb 2011 02:07:47 +0000

Why are companies always chasing growth?…

The answer is different for public companies, startups, small businesses, family businesses, and so on. For public companies The value of a company is significantly tied to growth, because the current stock price reflects what investors anticipate futu…

By: How to Evaluate an Offer from a Startup Incubator | Startup Lawyer

How to Evaluate an Offer from a Startup Incubator | Startup Lawyer — Sat, 05 Feb 2011 01:18:37 +0000

[...] incubators may want to set up an option pool. If so, the startup’s founders need to know this option pool lowers your pre-money valuation. Using the previous example, if an incubator wants your startup to set up a 15% option pool as part [...]

By: sex

sex — Sun, 02 Jan 2011 08:48:18 +0000

“Why would LeBron waste his talent on a team like the Chicago Bulls…stupid”

By: Bjorn Hendricks

Bjorn Hendricks — Mon, 06 Dec 2010 15:13:50 +0000

GREAT ARTICLE! I sincerely appreciate the resources you all have made available for entrepreneurs through VentureHacks.

This article brings up a question for me: Since shares are vested….when using the hiring plan to determine the size of the option pool, can (or should) you get granular to look at how many shares will be VESTED during the period before the next round of funding or just look at the total figure of shares you are allocating in a new employee’s hiring contract? (eg. a VP joining the team is getting 5% total which will be reflected in their contract BUT only .1% may be vested by the time the next round of funding comes, etc)

By: Raj

Raj — Sat, 20 Nov 2010 03:07:22 +0000

This is a great post . When bringing in a CEO on board in a Non Funded , prerevenue generating company which is ready to launch after a year plus of product development do you give options or common stock ? what is preferred and why?

Any advice is greatly appreciated.

By: Mihir

Mihir — Tue, 09 Nov 2010 18:41:24 +0000

Nivi and Naval, found your article helpful.

A quick question as I am prepare the terms sheet; since me (CEO) and my partner (VP Tech) are the founders and majority shareholders, would there be a benefit in reserving ANY stock options for ourselves?

I am thinking of suggesting 4.5% pool, (2.5% for all the directors and an additional 2% for two hires that we are planning).

Will appreciate your comments. Thanks, Mihir

By: Stock options – everybody in the pool « Jay Caplan on Medical Devices

Stock options – everybody in the pool « Jay Caplan on Medical Devices — Thu, 26 Aug 2010 03:38:13 +0000

[...] I totally agree with Mark Suster: Nivi at VentureHacks nails the options topic in his post “The Option Pool Shuffle.” Fundamentally, providing stock options to employees dilutes the ownership percentage of [...]

By: Venugopal

Venugopal — Wed, 25 Aug 2010 01:38:38 +0000

Hi Nivi,

Excellent post. Makes interesting reading.

Can you kindly mention what are the typical ranges for the founder’s shares ( Options ) taking a used case scenario.

That would be very helpful.

Thanks in advance.

Cheers,

Venugopal
Vengo Ventures

By: How VCs Calculate Valuation (And How It’s Different From The Way Founders Do It) | TechsZone

Tue, 17 Aug 2010 17:09:56 +0000

[...] This starts with understanding how VCs and entrepreneurs often see valuation differently. And no prizes for guessing which side of the table really understands the right answer. I’m not sure I really even need to write this at length because Nivi absolutely nailed the topic in his article “The Option Pool Shuffle.” [...]

By: Stock Plans: Give the People What They Want

Stock Plans: Give the People What They Want — Mon, 03 May 2010 21:26:37 +0000

[...] piece of the pie and do not intend for the stock or stock options to be handed out in reality (word is out on this one, guys), or (b) you only give out stock and stock options carefully and then only to those officers, [...]