Fundraising · Stock Options

Resources/reading about funding for early stage startups....

Sachin Gupta Hustler @ Stealth Mode

December 12th, 2013

I am new to startup arena and heard lots of things about seed funding, valuation and etc. However, I am not 100% sure about how funding works and would love to have clear idea about things. 

1) How seed funding and later funding works
2) How to divide equity among co-founders
3) How much is employee stock options pools
4) Anything else people should be worried about financial stuff(Stock related) when they startup???

Is there any good resource recommendations on these and related topics.  

Thanks
Sachin
A-level teams with B-level ideas succeed. B-level teams with A-level ideas fail. This course provides a comprehensive roadmap for building a standout team, teaching everything from hiring to structure, compensation, and culture.

Anonymous

December 12th, 2013

Hey Sachin,

As far as splitting equity between co-founders, I highly recommend "Slicing Pie" by Mike Moyer (who's on this site too, btw).

You can find loads of good info and excerpts on his web site at http://www.slicingpie.com/

Mike Moyer

December 12th, 2013

Hi Sachin,

Raphael recommended Slicing Pie and I do too! (Because I wrote it). Slicing Pie will tell you exactly the right way to divide up equity to make sure everyone has exactly what they deserve without guessing. It is the perfect tool for bootstrapped startups. If you email me at mike@slicingpie.com I'll send you a copy.

I have another (short) guide called Get Them Gators which makes the case for dynamic equity splits (as outlined in Slicing Pie). It's free and you can download a copy here: http://blpnt.co/pYzST

Jacob Kojfman Experienced technology and corporate lawyer, focusing on SAAS

December 12th, 2013

Hi Venture Deals by Brad Feld. Jacob Kojfman 604 318 4539

Albin Bajramovic

December 12th, 2013

Check out https://novoed.com/ Financing New Ventures - Great resource! 

Shobhit Verma

December 12th, 2013

Out of all the recommended practices out there, slicing pie made the most sense to me. Glad to know Mike is already on FD. Mike, is there a demand for an app/product other than the spreadsheet ?

Brendan Duffy Product Manager

December 12th, 2013

I think Jacob is referring to this: http://www.amazon.com/Venture-Deals-Smarter-Lawyer-Capitalist/dp/1118443616

I recommend it as well.