Startup Valuation
Coming up with the right valuation for your company in the beginning can be very tricky. Simply put, valuation is the value of your company. In the early stages of formation the value of your company is most likely close to zero. Obviously, using zero as your valuation isn’t going to help you find investors. Because, while they might appreciate your honesty, they will immediately see your lack of business experience. But what’s the best way to determine valuation? Check out the Funders and Founders infographic to find out How Startup Valuation Works.
The Human Capitalist Series P.1: The Basics
We’re excited to introduce a multipart and ongoing series about the basics of (and some advanced topics related to) equity for startup employees and contractors. The “Human Capital” aspect of any enterprise, especially a technology company, is its most valuable asset, and we hope to highlight the…
The Human Capitalist Series P.2: Stock Options
Stock options are the most common form of equity incentive for early-stage startups. A stock option grants the option holder the right to purchase a specific number of shares of the company within a fixed period of time at a preset “exercise” price, generally following the satisfaction…
The Human Capitalist Series P.3: How Are Stock Options Taxed, and Which Are Better, Incentive Stock Options or Nonstatutory Stock Options?
The U.S. federal taxation of stock options for U.S. taxpayers depends on whether the options are classified as incentive stock options (ISOs) or nonstatutory stock options (NSOs). Incentive Stock Options (ISOs) ISOs may provide a tax advantage to the holder if (i) the optionee does not sell…