Hey team, I’ve been following your main channel for a few months. It has added a ton of value to my life Thank you for the valuable information I majored in Finance and Entrepreneurship , and learn more from your start up 101, then in most of my Entrepreneurship major This also comes at a perfect time, as I am now starting to look for a technical cofounder and start creating my app idea. I have been working on market research and wire framin/ outlines for a year , and I am now ready to start looking into the backend developing. Just wanted to say thank you for all of your help
I didn’t major in Finance/Entrepreneurship, so I still can’t help feeling some impostor syndrome when I hear stuff like this. In the end, we just had to learn this stuff, either from experience or for necessity. Thanks so much for watching. Welcome to a much geekier version of our videos ✌🏽 Caya
Thank you for the great explainer Caya and team! The stock options explanation left me with a ton of questions, namely how someone could go bankrupt (wework show style) if (in theory) they do not exercise them before an exit, and also when an exit happens it’s not clear where the shares for those options would come from… because I’m assuming you can get actual shares from your option, you don’t necessarily need to sell them right away for the excess profits, right? Also it’s good to see you’re still uploading in HDR! I can’t imagine the pain it must be to edit the videos properly, it would be awesome to one day get a behind the scenes video on the whole process!
Congrats on being the absolute first comment EVER in our new channel 🫶🏼 You get a full answer to your questions, - When stock options are given to employees, those shares get created. They are owned by the company until the employee exercise them. - The employee can exercise them at any time, it's just usually not worth doing so. - If options aren't exercised, nothing really happens. Those shares don't get 'bought out' by anyone and they return to the unallocated option pool. - During an exit, most stock option executions trigger a simultaneous buy/sell action: so you get the cash. In an IPO it might be different. PS - HDR is a mess. Still figuring stuff out. Thanks so much for watching :) - Caya
I saw the thumbnail and I knew you had good quality content. You're channel will make it very big! EDIT: OMG even the pizza grabbing isn't a stock video! dang everything is custom made!
This is great content. I have multiple companies that are mine personally each with a private Investment Fund. They invest in and acquire companies in their work field especially startup companies where their equity is private as an LLC before an IPO or becoming unicorns. I use my budget normally to allow Investment instead of others money or money from the bank. The company Investing or myself personally has to like the company, brand and team and then the product sold. My teams at my company need better training on how startups work that way when there is a product our company has or finds, there is enough capital to invest or acquire and our company does not become the company we invest in or lose money or get a bad deal where we allow the company to operate over time before a buyout even if our company buys another company out. This is an excellent video that discusses how startups operate for amateurs and beginners to explain what's being purchased by some companies where they are not a hedge fund or typical private equity firm or anything except a company with capital that can be invested.
Awesome video, very informative! Just a quick suggestion: try to keep your volume consistent throughout, especially at the end of sentences. It can be tough to hear and follow when it drops. Hope this helps! Best of luck.
Very good video! I have quite a basic question: At 6:40, why would employees getting additional shares be taxed on them immediately but investors investing in the company and receiving shares too are not getting taxed on the new shares? What is it that makes the legal difference?
How does it work if the company is not publicly traded? If I am given 500 shares in a private company, how do I ever cash out? If I am let go or I decide to quit without selling my shares in it, do they disappear?
Those would be stock options, and they work somewhat different. Here’s our video about them; th-cam.com/video/CLntSaAzhiQ/w-d-xo.htmlsi=nq6b7FwSU0TVmC4N
If I only have 5,000 authorised shares per my articles of incorporation and all were currently issued and I need to issue new 1,000 shares , do i need to ammend my articles of incorporation?
Why all videos of slidebean is white shades over the video colour looks worst But while changing the video orientation for few seconds it's perfectly then again white colours messed up Seen this problem a while ago in other videos but it's a still in the current video also
If the reason employees get stock options instead of shares is the tax implication, why don't founders suffer that same tax implication at the point they're raising the fund?
Great question! In simple terms, those are unrealized gains: they purchased the stock when the company was founded (at $0.0001), but haven’t yet ‘sold’ those shares.
Hi, I'm looking for an Angel Investor for our EdTech startup. Our Education Technology startup is dedicated to simplifying and enhancing higher learning experiences, spanning SHS, College, University, Grad School, Review School and Law School, while making them more accessible, affordable, and enjoyable. We are seeking the support of an Angel Investor to propel our mission forward as we continue to refine and test our MVP. The amount is only $20,000.
Slidebean helps you navigate fundraising.
Caya and our team of experts can help → yt.slidebean.com/q3f
One of the best explanations on startup equity distribution I've seen.
Hey team, I’ve been following your main channel for a few months. It has added a ton of value to my life
Thank you for the valuable information
I majored in Finance and Entrepreneurship , and learn more from your start up 101, then in most of my Entrepreneurship major
This also comes at a perfect time, as I am now starting to look for a technical cofounder and start creating my app idea.
I have been working on market research and wire framin/ outlines for a year , and I am now ready to start looking into the backend developing.
Just wanted to say thank you for all of your help
I didn’t major in Finance/Entrepreneurship, so I still can’t help feeling some impostor syndrome when I hear stuff like this.
In the end, we just had to learn this stuff, either from experience or for necessity.
Thanks so much for watching. Welcome to a much geekier version of our videos ✌🏽
Caya
I love slidebean content❤. I'm building my startup and I think I will enjoy this channel a lot.Thanks for putting out amazing content
When your startup makes it, don’t forget about us!
- Caya
How has your startup been going @andersonzango4721
the editing behind the video is ABSURD, great content!
Well thank you :)
First video I have come across that ACTUALLY explained this! Thank you! Keep pushing out great content!
Thank you for the great explainer Caya and team! The stock options explanation left me with a ton of questions, namely how someone could go bankrupt (wework show style) if (in theory) they do not exercise them before an exit, and also when an exit happens it’s not clear where the shares for those options would come from… because I’m assuming you can get actual shares from your option, you don’t necessarily need to sell them right away for the excess profits, right?
Also it’s good to see you’re still uploading in HDR! I can’t imagine the pain it must be to edit the videos properly, it would be awesome to one day get a behind the scenes video on the whole process!
Congrats on being the absolute first comment EVER in our new channel 🫶🏼
You get a full answer to your questions,
- When stock options are given to employees, those shares get created. They are owned by the company until the employee exercise them.
- The employee can exercise them at any time, it's just usually not worth doing so.
- If options aren't exercised, nothing really happens. Those shares don't get 'bought out' by anyone and they return to the unallocated option pool.
- During an exit, most stock option executions trigger a simultaneous buy/sell action: so you get the cash. In an IPO it might be different.
PS - HDR is a mess. Still figuring stuff out.
Thanks so much for watching :)
- Caya
I saw the thumbnail and I knew you had good quality content. You're channel will make it very big!
EDIT: OMG even the pizza grabbing isn't a stock video! dang everything is custom made!
🍕
This is great content. I have multiple companies that are mine personally each with a private Investment Fund. They invest in and acquire companies in their work field especially startup companies where their equity is private as an LLC before an IPO or becoming unicorns. I use my budget normally to allow Investment instead of others money or money from the bank. The company Investing or myself personally has to like the company, brand and team and then the product sold. My teams at my company need better training on how startups work that way when there is a product our company has or finds, there is enough capital to invest or acquire and our company does not become the company we invest in or lose money or get a bad deal where we allow the company to operate over time before a buyout even if our company buys another company out. This is an excellent video that discusses how startups operate for amateurs and beginners to explain what's being purchased by some companies where they are not a hedge fund or typical private equity firm or anything except a company with capital that can be invested.
such nice and factual content, digging deeper into the details of a topic that is usually not talked about from this side
I cannot express in words how good this video is
Let's go!! This channel will be 💥💥
🔥
This is so cool. I just started my 2nd start up. Wish me Luck! 🎉
Good luck!
Good luck
Thanks for such a great video. I am doing a startup in SEA, yours are very valuable to me.
You’re welcome :)
this is SUCH a good video maybe even the best one on this topic
🫶🏽
great content. one bit of feedback though is i think the video itself may be a bit too bright, not the lighting but in post-production.
You can lower your device brightness 😂
I agree
Awesome video, very informative!
Just a quick suggestion: try to keep your volume consistent throughout, especially at the end of sentences. It can be tough to hear and follow when it drops.
Hope this helps! Best of luck.
thank you for such a great explanation of how this works. !!!! really really good content !!!!!!
Thank u for the videos and content u do. It is high quality info and interesting
Great explanation, thanks!
Very well explained!
I love how you explain the different insights of the startups Jose! 🙌
Btw, what do you use for your background tv?! Is this @windowsight?! 😮
This is gold!
Very good video! I have quite a basic question: At 6:40, why would employees getting additional shares be taxed on them immediately but investors investing in the company and receiving shares too are not getting taxed on the new shares? What is it that makes the legal difference?
In a nutshell: investors are buying them instead of ‘getting’ them.
@ Still if employees buy them at a strike price?
Great channel idea!
great explanation with the bricks analogy
Thanks 🙏🏽
This video is art
🫶🏽
Can you do a video on start up funding for LLC’s?
How does it work if the company is not publicly traded? If I am given 500 shares in a private company, how do I ever cash out?
If I am let go or I decide to quit without selling my shares in it, do they disappear?
Those would be stock options, and they work somewhat different. Here’s our video about them;
th-cam.com/video/CLntSaAzhiQ/w-d-xo.htmlsi=nq6b7FwSU0TVmC4N
If I only have 5,000 authorised shares per my articles of incorporation and all were currently issued and I need to issue new 1,000 shares , do i need to ammend my articles of incorporation?
Why all videos of slidebean is white shades over the video colour looks worst
But while changing the video orientation for few seconds it's perfectly then again white colours messed up
Seen this problem a while ago in other videos but it's a still in the current video also
Two Points
- Share division looks like
- Two Points in the Investment Agreement may added
helpful ❤
What a great intro.
Common share is confusing what did you mean owners get only 1 vote and 1 share from the profit
Super informative
Bro I really like u!!
Who is mark trick
Caya is the best ❤
🫶🏼
- Caya
Awesome
If the reason employees get stock options instead of shares is the tax implication, why don't founders suffer that same tax implication at the point they're raising the fund?
Great question! In simple terms, those are unrealized gains: they purchased the stock when the company was founded (at $0.0001), but haven’t yet ‘sold’ those shares.
Lego Lego.💮💫
I not understand
habibi you need help?
@skateboarding3007 s
and facebook is now 1.56 trillion
Still confusing
Rodriguez Gary Harris Kevin Martin Michael
Hi, I'm looking for an Angel Investor for our EdTech startup. Our Education Technology startup is dedicated to simplifying and enhancing higher learning experiences, spanning SHS, College, University, Grad School, Review School and Law School, while making them more accessible, affordable, and enjoyable. We are seeking the support of an Angel Investor to propel our mission forward as we continue to refine and test our MVP. The amount is only $20,000.
U spoke for 3 minutes nonsense.
Worst explanation