3 ms·
Paul Buchheit: Equity math for startups (sometimes 0.1% equals $138 million)
- dougw 20y agoGreat post. Thanks paul!
- patrick 20y agoVery informative!
- gustaf 20y agoGreat writing paul!
- chandrab 20y agoThis is one of the better posts I've seen on the topic..If you want to dive in deeper Brad Feld's blog series on term sheets. Another good read is: http://www.fenwick.com/VC_Terms.htm. http://www.fenwick.com/VC_Terms.htm. It covers nice things like liquidation preferences, rachet clauses and other things that will make your head spin!
- paul 20y agoThat's a good page. The link is broken though (YC news picked up the period). Here it is again: http://www.fenwick.com/VC_Terms.htm http://www.fenwick.com/VC_Terms.htm
- zkinion 20y agoVery nice blog posting. Its amazing how such a low percent can equal that amount of money.
- nickb 20y agoThis is a great lesson. A small piece of something big is worth less than a large piece of nothing! Now, what are the odds that there is gonna be another IPO this decade so that 0.1% of the pre-IPO stock ends up being worth $100mm+? And what are the odds that you'll be the part of it? :)