Thursday, January 5, 2012

7thechelon said: Hit there! I ran across a blog post stating you had a wicked spreadsheet for employee equity. I looked for it but could not locate it. The blog post Employee Equity: How Much? by MBA Mondays. Did you release it to the public or is it for private use?

Fred wrote this blog post that 7thechelon is referring to in this question over a year ago, and ever since then I get one or two requests a month for this spreadsheet.  I answer these requests in email, but I might as well cover the topic on this blog too.

The spreadsheet that Fred is talking about was a lot of fun to build, and I hope it added some value to the USV portfolio, but when I left the firm it was not in safe enough condition to share publicly.  It requires a soild hour of in-person explanation in order to drive it properly, and even then, there’s a good chance that a user could inadvertently break it and get unexpected answers that I fear they might rely on to make equity issuance decisions. That situation would _NOT_BE_GOOD_ (tm).  The spreadsheet is Fred’s property because I built it while at USV, and it’s his decision to do whatever he’d like with it.  I think it’s in the best interest of everyone to not release it in the form that I left it because the odds of using it to shoot yourself in the foot are too high.

Fred perfectly describes the methodology used to issue the appropriate amount of options to new employees in his post, and if you’re really interested in applying this methodology to your own company, he has already handed you everything you need to do so.  The spreadsheet he mentions isn’t going to get you any closer to your goal.


  1. thegongshow posted this