The Option Pool Shuffle

An investor that requires a generous option pool may seem not a big deal for a founder. However, if put into the pre-money valuation it substantially lowers the effective valuation of an investment and consequently the stake that the founder holds post-closing. This blogpost explains how it works and how misunderstanding is created (and solved). Creation of an option pool In most cases an option pool is set up when a venture capital investor participates in a company. It is usually a requirement of the investor based on a strong belief that the company’s employees will work harder and be [...]

By | September 4, 2016|Venture capital|0 Comments

Expert, Schmexpert

Sailing. That’s what I want to talk to you about. ‘But I thought this was supposed to be a VC blog?’ It is. Just bear with me. I’ve always dreamt of sailing around the world. Some time ago I decided that was exactly what I would do. Other than occasionally joining a friend on his boat, I did not have a whole lot of experience. But I figured that shouldn’t be a problem. I bought a small but seaworthy sailing boat. It needed some work in order to be ready for serious ocean sailing. I had only a vague idea of what exactly needed to be done. No problem, I thought. It’s just a matter of involving an expert. I made an appointment with a boat builder. I had come across his name in one of the many ads he placed in sailing magazines. We met at his huge boat yard. All sorts of sailing boats were being serviced and built in the yard. I had obviously come to the right place. […]

By | August 16, 2016|Venture capital|0 Comments