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 |2020-03-12T10:18:28+01:00September 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 [...]

By |2020-03-12T10:18:28+01:00August 16, 2016|Venture capital|0 Comments