5 ms·
Off the top of my head, let's do some math (keeping it simple, I have no idea of actual #s): Before fundraising: 84%: 3 Co-founders @ 28% each 16%: option poo
by kareemm 14y ago
Off the top of my head, let's do some math (keeping it simple, I have no idea of actual #s):
Before fundraising:
84%: 3 Co-founders @ 28% each
16%: option pool
1st round - $750k @ $3.75M post. No liquidation prefs or ratcheting. Now the cap table looks like this:
67.2%: 3 Co-founders @ 22.4% each
12.8%: option pool
20%: Angels
2nd round - $3M @ 10M post. 1x straight preferred liquidation pref (not participating), no ratcheting.
Cap table:
47.04%: 3 co-founders @ 15.68% each
8.96%: option pool
14%: Angels
30%: Blue Run
A $10M exit looks like this:
$3M: Blue Run
$4.70M: 3 co-founders @ $1.568M each
$896k: option pool payout
$1.4M: Angels
Not bad, not great, but that assumes no participating preferred preference, which would have everybody but Blue Run doing a heck of a lot worse.
- ssx 14y agoYou have to consider the fact they probably didn't give out all of the optional pool. Depending on how many employees they hired and at what skill level. My hunch is they only gave out 8% of the optional pool. At most.
- guynamedloren 14y agoInteresting perspective from the comments here. $1.5M per cofounder over 3 years puts them at $500k/year. Pays more than most jobs I can think of. And you can certainly do a lot with $1.5M in the bank (no mega mansion in SV, but endless traveling, comfort, etc). All relative, I guess. Us Hacker News folk have a skewed vision on the world :)
- rorrr 14y agoYou can't compare a rare successful startup exit to a regular salary. You could, but you need to multiply both by the risk factor. $1.5M is quite low, in my opinion. Not even close enough to retire in the US.
- guynamedloren 14y agoWho said anything about retiring? These people are 30 years old. I don't think the avg 30 year old has $1.5M cash in the bank (and a comfy position at a tech company). All I'm saying is that it's very respectable.
- rorrr 14y agoIt's slightly more respectable than someone winning a lottery. For every success story like that there are hundreds of developers who didn't take regular jobs and ended up in debt and bankruptcy.