When Negotiating Don’t Ignore Your ESOP Reserve
Categories: Hi-Tech
When negotiating with investors, many companies and founders are focused on maximizing their valuation – which is understandable: assuming the amount of the investment is set, the higher the valuation of the company, the lower the percentage of the company the investor will hold after the investment. One issue that is often overlooked by companies and their founders when negotiating with investors is the percentage of the company that will be reserved for the “Unallocated ESOP”.
