Building a Start Up Team

Building a Startup Team

Hiring for a startup is different than hiring for an established company. Its small size typically characterizes a startup, limited resources, and quick pace of work. Startups are often built around a new product or service, and are typically founded by entrepreneurs passionate about their idea and driven to turn it into a success. Because…

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Liquidation Preferences

What are Liquidation Preferences?

An investor’s right to have their money returned before common stock holders, which usually includes founders and employees of a company, is called a liquidation preference. In other words, the liquidation preference determines how much money must be returned before founders and employees of a company can receive returns in case of liquidation such as…

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Start up Ownership

Startup Stock Ownership

Startup equity is essentially ownership of a company expressed in shares of stock. Founders who incorporate their companies (likely in Delaware) without outside investors have 100% ownership on day one.  You may have put in your own money along with your co-founders. You may have worked without compensation for some time, and your opportunity cost of…

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Employee Stock Options

Employee Stock Options

Stock options allow employees to purchase shares at a fixed price. Many companies, startups, or private companies often include these options in compensation packages for potential employees. Stock options are not shares of stock. These options allow you to buy certain numbers of company shares at a fixed price. This is often called a grant, striking price, or exercise…

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