How Startup Options (and Ownership) Works

FundraisingComp & Equity
Written By Kent Goldman
 

WRITTEN BY: SCOTT KUPOR
ANDREESSEN HOROWITZ


This is a helpful guide for understanding the general mechanics of equity ownership. This overview covers:

  • Cap Table

  • Financing History

  • Preferred Stock vs Common Stock

  • 409a Valuation

  • Dilution

  • Liquidation Preferences

  • IPOs

  • ISOs vs non-quals (and exercise periods)

  • M&A

  • Single Trigger vs Double Trigger

Read the full guide here.

Originally Published:
August 24, 2016, How Startup Options (and Ownership) Works, Scott Kupor- Andreessen Horowitz

 
Kent Goldman
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