Paul Buchheit: Equity math for startups (sometimes 0.1% equals $138 million)

This is one of the better posts I've seen on the topic..If you want to dive in deeper Brad Feld's blog series on term sheets. Another good read is: http://www.fenwick.com/VC_Terms.htm. It covers nice things like liquidation preferences, rachet clauses and other things that will make your head spin!

That's a good page. The link is broken though (YC news picked up the period). Here it is again: http://www.fenwick.com/VC_Terms.htm

This is a great lesson. A small piece of something big is worth less than a large piece of nothing!

Now, what are the odds that there is gonna be another IPO this decade so that 0.1% of the pre-IPO stock ends up being worth $100mm+? And what are the odds that you'll be the part of it? :)

Very nice blog posting. Its amazing how such a low percent can equal that amount of money.

Great post. Thanks paul!

Great writing paul!

Very informative!