Ownership Structure

Equity vs. Stock Options in a Startup

Ownership of a company is typically expressed in terms of stocks or shares. Each person with a stake in the company is given a percentage...

How do Equity Incentive Plans Work?

An equity-based incentive plan involves companies compensating employees, partners, directors, contractors, or other parties by issuing them shares or units in an equity plan to...

Creating an ESOP Pool: A Comprehensive Guide

Employee Stock Ownership Plans (ESOPs) are a powerful tool that can help businesses attract, motivate, and retain top talent. By giving employees a stake in...

 What is Accelerated Vesting of Stock Options Upon Termination?

Accelerated vesting upon termination is a provision that enables an employee to have quicker access to restricted company shares or stock options provided as an...

A Complete Startup Compensation Guide to Master the Equity Negotiations

Equity startup compensation is the dynamic cornerstone of modern work arrangements, fueling the dreams of both entrepreneurs and trailblazing employees. Learn the language of equity...

What Is a Good IRR for Venture Capital?

A good IRR for a venture capital investment is generally considered to be anything above 30%. This is because venture capital investments are inherently risky,...

Pre vs. Post Money SAFE

When building your startup, understanding the nuances of investment instruments is crucial. That’s why we’re diving into the differences between pre-money and post-money SAFEs (Simple...

Startup Equity Awards Guide

Navigating the world of equity awards can be tricky, especially when you’re at the helm of a startup. You’re about to dive into a comprehensive...

Average Stock Options for Employees

If you are in the process of hiring new employees and considering offering them stock options, you are likely wondering about the appropriate number of...

Incentive Units vs. Stock Options

The competitive job market has prompted many companies to offer incentives to their employees in order to retain them. Of course, it is not easy...

RSU vs. Stock Options

Restricted Stock Units (RSUs) and stock options are two forms of compensation offered by companies to their employees. RSUs involve a commitment from the employer...