Founder resource center Equity 101: Equity basics for founders Learn the basics of equity, how to distribute equity to early employees, and what a cap table is.
Founder resource center What you need to know about equity rights and liquidation preferences When a private company exits, who gets paid what (and when) is primarily dictated by the following liquidation rights and preferences.
Equity education Equity 101 Part 3: How stock options are taxed We explore what it means to exercise stock options, the taxes you may need to pay, and the common times people exercise their options.
Equity education Equity 101 Part 2: Stock option strike prices What determines a stock option strike price? Learn more about strike prices, how stock options gain value over time, and dilution.
Equity education Equity 101 Part 1: Startup employee stock options Received stock options from your company and don’t understand what that means? Here’s how to make sense of your offer letter and option grant.
Equity education What is Form 3921? If employees exercised incentive stock options (ISOs) last tax year, your company needs to file IRS Form 3921. Companies must file one form per employee, and if they miss the deadline or ignore IRS reminders and fail to file, they could end up paying expensive fines.
Equity education What is stock dilution? Common causes of stock dilution The need for new capital: When private companies need more capital, they typically issue new shares to investors in a funding round, which reduces the overall percentage of ownership for existing shareholders. Increasing employee pool: Incoming investors usually require companies to create a stock option pool. The timing of when […]
Recently added Employee Shareholder Bill of Rights Fair equity practices for employee shareholders at venture-backed companies.
Equity education The accredited investor requirement needs to change The accredited investor rule is outdated. Here’s why it needs to change.