Stock Options Questions
Is a one-year cliff with no accelerated vesting typical?
6 points
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...
123 points
Wondering who owns stock/options pool before they are given out, e.g. in case of vesting. The company? (if yes, can an LLC own stock/options?), or the investor?
113 points
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...
1,747 points
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,...
11 points
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?
208 points
What are the right questions to ask when someone is providing stock options as a form of partnership?
11 points
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...
134 points
Here's an example, just in case the question isn't clear. 20 employees, 20 million shares in option pool. Each employee is given 2 million shares with standard terms (1 year cliff, 25% vesting on...
25 points
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...
301 points
Suppose someone needs to incorprate a C-corp, for a high tech high growth business. How does option pool size at the time of incorporation impact valuation and funding. Or it only matters how...
151 points
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...
121 points
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...
113 points
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...
193 points
I just incorporated a Delaware C Corp a few months ago and have no significant activity yet. I have 2 Advisors that I need to issue options to, and my question is how do I set the option exercise...
441 points
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...
76 points
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...
16 points
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...
140 points
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!
441 points
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...
441 points
