By Fred on October 18, 2010
A stock option is a security which gives the holder the right to purchase stock (usually common stock) at a set price (called the strike price) for a fixed period of time. Stock options are the most common form of employee equity and are used as part of employee compensation packages in most technology startups.
By chris on August 25, 2009
One things I’ve noticed over the years is that equity grants given to new employees soon after Series A financings are generally a bad deal for those employees on a risk/reward basis. (By a Series A financing I’m referring the first round of funding by VCs, where the amount raised is roughly $2M or more).
By Seth Godin on March 19, 2009
A friend asked me to help him think about how to split the equity in a company he was starting. His colleague is contributing office space and some key technology. My friend is responsible for where the business goes from here. I told him this: