A belated holiday gift was given to all California option grantees from the California Franchise Tax Board. If you remember from our previous series on 409A, if you screw up, the option holder gets hit with a 20% federal excise tax. Not to be outdone, it appears that California is also tacking on a 20% […]
From time to time people ask us where to find a good dictionary to explain some / all of the terms that we use on this blog. While not perfect, after some research, we recommend this dictionary.
We’ve gotten a slew of questions like the one below. It’s impossible to give a precise answer to “is this offer a good one for my company?” when all we have is a paragraph or two to go on. So – like all good Aesop wanna-be’s – we’ll try to pull out one or two […]
Question: I’ve always been curious, what are standard GP terms for venture funds? What carry percentages are there? How much do GPs actually put into funds? Our Take: There is a range, but in terms of general economic terms: – Management Fees: 1-3% of capital commitment. Smaller funds usually have a higher percentage. The norm […]
Stu Phillips – a partner at Ridgelift Ventures – has a good post titled So, how many boards are you on? that is a follow on post to the one I wrote on Feld Thoughts titled Reconciling Time Commitments.
Question: A founder who plans to take several rounds of dilution (Seed, Series A, etc.) and to have a decent sized employee option pool has to plan carefully if he/she also wants to retain control. But equity and control are not the same thing. They can be separated by issuing non-voting shares to employees and […]
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