Run the Numbers

E2: Webflow's VP Finance Ivan Makarov on Understanding Startup Equity

23 snips
Jan 3, 2024
Ivan Makarov, VP of Finance at Webflow and seasoned finance leader, dives deep into the complexities of startup equity. He shares insights on hiring challenges during hypergrowth and explains the pivotal shift in recruiting dynamics after reaching a $2B valuation. Makarov also breaks down common misunderstandings about equity, emphasizing how finance leaders should communicate these concepts to employees. With a touch of humor, he recounts the craziest expense attempt he encountered, likening it to navigating a labyrinth of financial decisions.
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ADVICE

Document The Key Equity Facts First

  • Write down the who, what, where, when for any equity offer before negotiating.
  • Use those facts to make a clear financial decision about your time and pay tradeoffs.
ADVICE

Calculate Exercise Costs And Deadlines

  • Check your option strike price and calculate the cash needed to exercise at full grant.
  • Verify the post-termination exercise period so you won't be forced to pay unexpectedly after leaving.
ADVICE

Assemble A Career Board And Coach

  • Build a personal 'board of directors' and secure an ongoing coach for career growth.
  • Tap former managers and investors for introductions and practical advice when facing new challenges.
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