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Startup Funding Espresso – Why Give Stock Options to Employees
Why Give Stock Options to Employees Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startups give stock options to employees as part of their compensation package. Most startups create an options pool at the Series A fundraise. A founder-friendly term sheet will have both the investors and the founders pay for the options pool. In an investor-friendly term sheet, the founders will pay for the options out of their equity. It's important to create an options pool as it provides incentive to the employees. It allows the…
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