Cooper: Recapitalizations must re-incentivize employees with underwater stock options
Scott Kupor · How to Get the Most from Your Board · Jun 14, 2019 · at 10:48
Scott Cooper, managing partner at Andreessen Horowitz, discusses board dynamics and equity restructuring during startup recapitalizations.
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“So there's no sense in any of us putting more money in the company if it turns out all of your stock options are underwater and you've got no financial incentive, and then tomorrow everybody's going to walk away from the business, right? So this requires kind of give and take on both sides, which is, you know, the VCs will give up a lot of the rights that they otherwise had, but importantly, the give that the VCs, you know, need to do to make this successful is To kind of re incents the team as well, and make sure that you all are, you know, shooting for the same ultimate outcome.”
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