8 Questions to Ask About Startup Equity Before Accepting the Job

Posted by Dan Eyman | February 19th, 2017 | No responses

Ask These Questions Before You Accept the Offer What percentage of the company's equity do the options represent? The number of shares granted really don't matter if you don't know the denominator, i.e. the total number of shares. Don't think in terms of number of shares or the valuation of shares [...]

5 Factors That’ll Make a Big Difference With Your 409A Valuation

Posted by Dan Eyman | October 10th, 2016 | No responses

When it comes to private company 409A valuation it is helpful to first have some context in terms of how to think about it. First, 409A valuations are a tax compliance issue. They are not the value of your company upon an acquisition or the pre-money that you might go [...]

Unlocking the Unicorn Handcuffs

Posted by Dan Eyman | September 30th, 2016 | No responses

New legislation was introduced in July and passed the house last week called the Empowering Employees Through Stock Ownership Act (EESO) and it is aimed at providing employees of privately held company employees the flexibility in handling the tax obligations with exercising stock options for a period of up to seven years. [...]

The 3 Things eShares Gets Wrong on 409A

Posted by Dan Eyman | August 18th, 2016 | No responses

eShares, the cap table management software company recently announced that they had four announcements regarding their lead gen product, also known as 409A valuations to us, recently here. After the announcement I took the time to look into the offering and claims from them. I downloaded the open source model […]

What is Phantom Stock?

Posted by Dan Eyman | July 5th, 2016 | No responses

 It is stock that entitles you to a Rolls Royce Phantom….not really…that would be cool though. Phantom Stock Phantom stock is simply a promise to pay a bonus in the form of the equivalent of either the value of company shares or the increase in that value over a period […]

Rights & Preferences: Conversion Rights

Posted by Dan Eyman | May 15th, 2016 | No responses

What is a Conversion Right? Investors are issued Preferred stock and not common stock. Preferred stock typically has more economic value than common stock due to the rights and preferences that are granted with the issuance of such stock. One of these rights and preferences is conversion rights. A conversion right […]

Do I Need a 409A??

Posted by Dan Eyman | October 22nd, 2015 | No responses

Can you answer yes to Any of the following questions?? Did you raise a round of financing?   Do you want to issue stock options to new employees?   Are you issuing restricted stock?   Are you issuing any warrants on your common stock?   If you can answer yes […]

8 Questions to Ask Before Accepting a Job at a Startup

Posted by Dan Eyman | September 22nd, 2015 | No responses

1. What type of equity grant will I receive? Equity can be granted in the form of  Incentive Stock Options (ISO), which is most typical for and can only be granted to employees, Nonqualified Stock Options (NSO), and Restricted Stock Units (RSU). For the difference on ISO versus NSO see @Capshare’s […]

How Many Options Should You Grant?

Posted by Dan Eyman | May 12th, 2014 | No responses

A lot has been written about stock option grants, what they are, and how they work. I’ll spare you the minutia as you can read it elsewhere. One question I do get when I do consulting is how much to grant to employees versus directors etc…so here is a quick […]

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