Startup Funding Espresso – Why Give Stock Options to Employees
[audio src="https://traffic.libsyn.com/secure/angelconnect/01.why_give_stock_options_to_employees.mp3"][/audio]Why Give Stock Options to Employees Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startups give stock options to employees as part of their compensation package. Most startups create an options pool at the Series A fundraise.…
Investor Connect: Building Ontario VC Ecosystem, Governance, and Scaling Innovation
On this episode of Investor Connect, Hall welcomes Brenda Hogan, CIO at Venture Ontario, to discuss how Venture Ontario operates like a sovereign-wealth-style investor focused exclusively on backing venture capital funds across general technology, life sciences/medical devices, cleantech, and climate tech. Brenda explains how fund-of-funds and co-investment models help develop…
Allowing Employees To Sell Stock on the Secondary Market
Startups that take a long time to reach an exit should consider allowing employees to sell stock on the secondary market. While many startups launch an exit in the five to seven-year range, many more are still running well past this timeframe. Founders compensated employees with stock options. Employees signed…
How To Handle an Exploding Term Sheet
An exploding term sheet is one that comes with a specific deadline, including a time of day and date. It often gives the founder very little time to make a decision. For founders receiving an exploding term sheet, consider the following: Most of the time, the investor will invest beyond…
Key Factors Impacting Investor Returns
Startup investors seeking higher returns should consider the following factors: Due diligence -- there must be a meaningful amount of due diligence performed on the startup before investing to increase the returns. At least twenty hours of diligence should be done for any investment. Diversification -- it's important to invest…
