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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

For most startup employee’s startup stock options are now a bad deal. Why Startups Offer Stock Options. In tech startups stock options were here almost from the beginning, first offered to the founders in 1957 at Fairchild Semiconductor , the first chip startup in Silicon Valley. Here’s why.

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7 Costs To Consider Before Taking Your Startup Public

Startup Professionals Musings

They are still nowhere near the rate required to match the yearly total of 486 hit way back in 1999. There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. The costs of an aborted IPO are sizable, and may not be deferred to a later period or offering.

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7 Reasons To Reconsider A Planned IPO Exit Strategy

Startup Professionals Musings

According to Investor's Business Daily , even though IPOs in 2018 through July were up nearly 39 percent from last year, the total of 115 companies so far is still nowhere near the rate required to match the yearly total of 486 hit way back in 1999. There are real ongoing costs of maintaining a public company.

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2011 May be the Year of the IPO for Social Media

Startup Professionals Musings

The timing of an IPO is driven heavily by the state of the economy in general and the stock market in particular, in concert with your profitability. In 1999, there were 486 IPOs nationwide; just 10 years later, in 2009, there were only 63. These can add millions to the cost of doing business. Do you need this for your image?

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Understanding Changes in the Software & Venture Capital Industries

Both Sides of the Table

When I built my first company starting in 1999 it cost $2.5 million in team costs to code, launch, manage, market & sell our software. We paid 10% of the normal costs for the software and that money was for software support. A 90% disruption in cost spawns innovation – believe me.

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Should You Share Equity with Consultants?

www.inc.com

Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. That cost him accounting fees, legal fees, and time because the financing round couldnt close until the arrangements were formalized. Consult your lawyer for details.

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409A Valuations

Venture Chronicles

– If private investors have already bid up the valuation, will there be an IPO jump in the stock price? This breaks the conventional wisdom about pre-IPO stock options. Companies are required to price their employee stock options close to the “market valuation&#.