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Guides

Tactical Guides For
Cap Table & Equity Management

Pre-Money SAFE vs. Post-Money SAFE: What’s the Difference?

Pre-money SAFEs and post-money SAFEs let investors give money to a startup for the right to future equity. But they are different in key ways. Learn more.

What Is Private Equity and How Does It Work?

Private equity is a type of financing in which money is invested into a private company. Read our guide to private equity and venture capital for founders.

Pro Rata Rights: What Startup Founders Need To Know

Pro rata rights entitle existing investors to keep their initial ownership percentage in subsequent rounds of financing. Here’s why they matter.

What Is a 409A Valuation? A Guide for Startup Founders

A 409A valuation is an appraisal of a private company’s fair market value (FMV). It determines the price of stock options offered to employees. Learn more.

Startup Stock Options: A Simple Guide for Founders and Employees

Startup stock options work similarly to employee stock options at other types of companies. But startups move quickly, and so can the value of your options.

What Is Stock Vesting and What Does It Mean to Be Vested?

Most equity grants require a time-based vesting period or set of vesting milestones in order for the employee to become a full owner of the award. Read on.

How Do Stock Options Work?

A stock option is a contract that allows a person to purchase a number of shares of stock at a fixed price. Learn how employee stock options work.

Exercising Stock Options: What It Means and When To Do It

Exercising stock options means buying shares of the issuer’s common stock at the price set by the option grant agreement. Learn when and how to exercise.

Restricted Stock Units (RSUs) vs. Stock Options: Which Is Better?

Learn about the difference between RSUs and stock options.

Single-Trigger vs. Double-Trigger Acceleration: What's the Difference?

Single-trigger and double-trigger acceleration happen when specific events cause the vesting schedule of an equity grant to speed up. Learn more.

What Is Fair Market Value (FMV) and Why Does It Matter?

The fair market value of a private company’s stock is how much one share of that stock would be worth on the open market. Learn more about how FMV works.

What Is a Tender Offer? How This Liquidity Option Works

A tender offer typically gives shareholders an opportunity to sell some or all of their shares. A company or third party can be the offerer.

What Is the Rule 701 Exemption?

Rule 701 allows qualifying private companies to avoid the expense of providing some financial disclosures. Here’s what founders and employees should know.

What Is a Convertible Note?

Convertible notes are short-term debt instruments oftentimes used in seed financing and venture capital. Learn more and see if they make sense for you.

What Is the Section 83(b) Election? A Guide for Startup Founders

A Section 83(b) election is a short letter you send to the IRS to clarify how you want to be taxed on your equity. Learn how it can affect your tax bill.

What Is a Cap Table? A Guide for Startup Founders

A capitalization table, or cap table, is a table displaying a company’s equity ownership. Learn what every founder should know about cap tables.

Startup Funding Rounds: What to Know From Seed to IPO

A funding round is an event in which investors give a startup money that enables it to continue growing. Learn the A-B-Cs in our guide for founders.

How Are Stock Options Taxed?

In choosing whether or when to exercise stock options, tax implications play a role. But different types of stock options are taxed differently. Read more.

What Is Venture Capital and How Does It Work?

Venture capital (VC) provides capital to young startups that have the potential to grow into much larger and more valuable companies over time. Learn more.

Phantom Stock Plans: How This Alternative to Real Equity Works

Phantom stock, otherwise known as shadow stock, is a way to compensate employees without granting them actual shares of company stock. Learn more.

Pulley's 409A Guide

What is a 409A valuation, why you need one, and how to get one

Modeling Dilution

Planning your company's equity roadmap is important so you don't give away too much of the company in the early days.

Basics of Employee Equity Plans

Things to consider when making an option pool.

Part I: What is Equity, and Why does it Matter? The Startup Founder's Guide to Equity

Keeping your slice of the pie.

Part II: The Equity Terms that Actually Matter for Founders. The Startup Founder's Guide to Equity

Learn about the must-know equity terms for founders.

Part III: Is your cap table broken? Mistakes to avoid. The Startup Founder's Guide to Equity

Is your cap table broken? Find out how to build a strong cap table.

How to start a company in 4 days

Learn how to get up and running in just 4 days.

The Startup Founder's Guide to Seed Rounds

Everything a startup founder needs to know about fundraising.

Understanding the difference between ISOs and NSOs

Learn about the different between ISOs and NSOs types of stock options.

Not sure what you need for your cap table?

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