Brad Feld Foundry Group

What Brad Feld, Foundry Group says about topics vital to entrepreneurs

Investors Require Employee Stock Options

Brad Feld venture capitalist and Managing Director Foundry Group

“Investors will almost always require that the company set aside additional shares for a stock option plan for employees. Investors will assume and require that these shares are set aside prior to the investment, thus diluting the founders.   If there are multiple investors, they must be treated as one in the calculations [].”  Brad Feld, Venture Capital Deal Algebra , July 7, 2004; 

http://www.feld.com/wp/archives/2004/07/venture-capital-deal-algebra.html