Prism’s guide to the most important terms in startup equity, valuation, and compensation.



An acquihire is when a company is bought primarily for the skills and expertise of its staff, rather than the actual product or services.


An acquisition is a type of exit event for startups that occurs when your company is purchased by another company.


Bargain Element of an Option

The bargain element of an option is the difference between the Strike Price and the market price per share at the time of exercise. As a company grows and becomes more valuable, your bargain element grows as well.


Equity Compensation

Equity Compensation is a portion of your total compensation that is given in the form of equity rather than in cash.

Evaluating Startup Offers

When evaluating startup offers it is important to understand and evaluate all aspects of your respective offers in order to choose the offer you think is best for you. Here are some important questions to consider.


Vesting Schedule

A vesting schedule is a predefined schedule that determines when you will begin to vest into the stock based compensation plan. Most often these are time related metrics, but they can also be performance based.

Get Cash Today. Keep Equity For Tomorrow.