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Thanks a lot. To answer your questions 1. Yes we do have other investors (we raised a very small seed round) 2. Yes - there are options issued 3. Yes some of th

Thanks a lot. To answer your questions 1. Yes we do have other investors (we raised a very small seed round) 2. Yes - there are options issued 3. Yes some of the issued options are unvested. No, I wont be the sole owner after the transaction. Thank you for the very helpful links - I would go through them. We do not have the option of merging with another company - but we do have the option of officially changing the name (the current brand name of the company is not the same as the legal name - we were going to change the legal name - but it kept getting postponed for some reason. We are exploring couple other options as well.

redtexture 13y ago
It looks like you have the equivalent of a new investor round, with a new valuation for the company, with all of the consequences of that new price/valuation. Already having other investors and option holders makes it a challenge to do any other creative things...compared to being or becoming the sole owner. This is the standard state of affairs after a new investment round at a higher price. For example, not much different than the experience variance between a pre-series-A round investment employee compared to the new post-Series-A-investment employee experience in relation to options and pricing. Not much to be done about that. I guess you could have a 100-for-one stock split, post buy-out for present owners and option holders, as a method to getting new lower priced shares for future new employees. A future new employee's likely option fraction of the total company are going to be smaller, post-financing on any new investment/pricing round.
- tom_throwaway 13y ago
  Thank you for the detailed response - very helpful!
- deleted 13y ago
  [deleted]