Summary: Focus on your share price and the number of shares you own — metrics like valuation and percent ownership can fool you. If valuation is your only pespective on a company’s capital structure, you can get fooled by games like the option pool shuffle which make your valuation seem large but actually depress your [...]
Entries Tagged as 'Valuation'
Focus on your share price, not your valuation
April 11th, 2007 · 8 Comments · Option Pool, Valuation
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The Option Pool Shuffle
April 10th, 2007 · 35 Comments · Hiring, Option Pool, Valuation
“Follow the money card!” – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you. Use a hiring plan to justify a small option pool, increase your share price, and increase your effective valuation. If you don’t keep your eyes on the option pool while you’re [...]
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