Stock Options Questions


2 Votes
0 Answers
3.87K Views
Common stock or stock options when getting a co-founder prior to seed funding?

I have built a startup in the last 2 years by myself and have a decent amount of traction. While going out looking to raise some seed capital, one the things that keeps coming up is having a...


1 Votes
1 Answers
567 Views
Forming a C-corp: should I allocate Preferred stock from the get-go?

While creating my C-corporation on LegalZoom, a question asks how much should I issue of both Common and Preferred stock. What's a good rule of thumb for this?Is Preferred stock even needed if I...

asked Mar 2 '14 at 19:50
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Jim Crowell
50 points

0 Votes
1 Answers
516 Views
Does restricted stock options give you voting rights?

If you have equity in a business in the form of restricted stock, does it give you voting rights as well?

asked Mar 10 '14 at 01:30
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Beau Zielke
20 points

1 Votes
1 Answers
471 Views
Should you exercise your stock options early if your company allows it?

I'm a developer at a "startup" with a company size of over 50. While I am great at coding, matters like stock options and equity aren't my cup of tea.Is there any benefit to exercising the...

asked May 29 '14 at 16:30
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Emerson Thompson
9 points

0 Votes
1 Answers
607 Views
What liquidity options does a founder have early on?

Is there any hope for a founder to sell shares between series seed and series A? After two years of getting a business off the ground with co-founders, I could use cash for family reasons. I have...

asked Feb 21 '14 at 06:28
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User30169
1 point

0 Votes
0 Answers
713 Views
ESOP not mentioned in offer letter given by unlisted startup

I have an offer from a startup. The Employer verbally mentioned that when the company goes into listing ESOP(Employee Stock Options) will be provided to me but it is not written in the offer...

asked Nov 8 '13 at 14:00
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User28606
1 point

1 Votes
1 Answers
1.11K Views
Failing to file 83(b) election

I worked for a start up for a year and I had 1/4 of my stock options vested. I decided to exercise the options and purchased it on 8/15. I gave them the check but it was not until last week (10/12)...

asked Oct 23 '13 at 07:21
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Denniss
116 points

2 Votes
2 Answers
938 Views
How can a founder structure the stock options pool to get guaranteed percentage?

Let's say I have a company where I am the founder and also have 2 employees - E1 and E2. Let's say there are 1000 authorized shares, but only 800 of them are issued. 600 of those shares are...

asked Oct 8 '13 at 04:45
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Salmon
960 points

1 Votes
1 Answers
660 Views
Different vesting schedules among founders

I'm the technical co-founder at a startup. We have soft-circled nearly 50% of our seed round, are participating in an accelerator this summer, are rapidly acquiring new users, and have been in...

asked Jul 25 '13 at 00:28
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Sohan Jain
6 points

1 Votes
1 Answers
524 Views
Equity options/logistics for first hire

We're in the process of hiring our first employee and trying to figure out logistics given that we're making the employment offer in parallel with our seed funding. All of our current funding up to...


1 Votes
1 Answers
1.17K Views
Accepting stock options from another company while in H1B

I am currently working for a company and I'm on an H1B. I know that I cannot accept compensation from any other employer but the company that filed for my visa. What if another company grants me...

asked Jul 17 '13 at 09:35
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Gevorg
106 points

1 Votes
1 Answers
578 Views
Stock options for overseas contractors

Our company is a US based software start-up. We have 3-4 contractors in India (Indian citizens, never worked in US) and we pay them directly. We are considering issuing stock options to them. I...

asked Jul 23 '13 at 03:38
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User27108
6 points

1 Votes
0 Answers
359 Views
Stock Option Calculation

I received offer from company that just raised Series A round. I'm trying to determine a method of finding out how much my stock options are worth. They gave me multiple offers with varying...

asked Jul 2 '13 at 16:34
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Harmon
6 points

1 Votes
4 Answers
1.74K 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...

asked May 2 '13 at 22:47
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User26081
6 points

1 Votes
1 Answers
605 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...

asked Apr 11 '13 at 03:05
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Iamjonesy
129 points

-2 Votes
1 Answers
411 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...

asked Apr 3 '13 at 22:57
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Gauthier
1 point

6 Votes
3 Answers
834 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...

asked Mar 14 '13 at 09:17
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David Cowden
133 points

2 Votes
2 Answers
557 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...

asked Mar 19 '13 at 04:34
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Kevin Victor
11 points

0 Votes
0 Answers
388 Views
How much Equity should I get?

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...

asked Feb 12 '13 at 04:03
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Lovable Chris K
1 point

1 Votes
1 Answers
412 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?...

asked Feb 14 '13 at 11:19
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Srikanth Raju
106 points