Advisory Shares: Why 90% of Them Are Worth Nothing (And When to Take the Deal)
Advisory Shares: Why 90% of Them Are Worth Nothing (And When to Take the Deal) Run the math. A pre-seed advisory grant of 0.225% equity, at a startup with a 15% chance of surviving, sold at a 6x exit multiple on a $1M...
Common Stock vs Preferred Stock: The Liquidation Waterfall That Wipes Out Founders (With Real Math)
Common Stock vs Preferred Stock: The Liquidation Waterfall That Wipes Out Founders (With Real Math) A founder I know owned 45% of his company on paper. The acquirer paid $25 million — exactly what investors had put in...
Common Stock vs Preferred Stock: What Angel Investors and LPs Actually Own
Common vs Preferred Stock: What Investors Actually Own In a startup financing, founders and employees hold common stock while investors hold preferred stock — two different securities with radically d
Anti-Dilution Provisions: What Every Angel Investor Needs to Know
According to PitchBook's research , nearly 25 percent of all US venture rounds in 2024 were flat or down rounds — a decade high — making anti-dilution provisions more relevant than they have been sinc
Advisory Shares: What They Are and How to Negotiate Them
TL;DR: Advisory shares are equity grants to outside advisors, typically awarded as NSOs or RSAs. Standard advisors receive 0.25% at idea stage, dropping to 0.15% by growth stage. You vest over two yea
ROFR Explained: How Right of First Refusal Affects Your Exit
**TL;DR: Right of First Refusal (ROFR) gives your company and other investors the right to match any third-party offer on your shares before you can sell them. This restriction can delay your secondar
Advisory Shares Explained: What Angel Investors Need to Know Before a Startup's Cap Table Matters
According to Carta's H1 2024 compensation data , the median pre-seed advisor equity grant is 0.21% of fully diluted shares, down from 0.25% in prior years. Only 10% of pre-seed advisors receive 1% or...
Advisory Shares: What Startups Pay Advisors Instead of Cash — and What to Watch For
Advisory Shares: What Startups Pay Advisors Instead of Cash — and What to Watch For TL;DR: Carta's H1 2024 benchmarking data shows the median advisory equity grant at pre-seed is 0.21% of fully…
Advisory Shares Explained: What Founders Give Up and What Advisors Actually Earn
Advisory Shares Explained: What Founders Give Up and What Advisors Actually Earn TL;DR: According to Carta's 2024 Annual Equity Report , the median advisory equity grant at pre-seed stage was 0.21%...
ROFR (Right of First Refusal): What It Means, When It Protects You, and When It Costs You
In 2008, craigslist co-founders Jim Buckmaster and Craig Newmark tried to use a right of first refusal to dilute eBay’s 28.4% stake in their company. The mechanics were creative: offer new shares to anyone who...
Advisory Shares: What Every Startup Advisor Should Know Before Signing
A founder called me last year. She had given 2% of her company to a "strategic advisor" who showed up to three Zoom calls and then disappeared. No deliverables. No introductions. No accountability. Just 2% of her cap...