Steve Blank

APRIL 10, 2019

VC’s have just changed the ~50-year old social contract with startup employees. For most startup employee’s startup stock options are now a bad deal. As Venture Capital emerged as an industry in the mid 1970’s, investors in venture-funded startups began to give stock options to all their employees. Here’s why.

Stock Options 334

Stock Options Stock Vesting Common Stock 334

www.inc.com

SEPTEMBER 24, 2011

Employee Benefits. Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. "We Business Taxes.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Both Sides of the Table

AUGUST 30, 2010

Let me preface by saying I obviously have a vested interest in being wrong about tough times ahead but as the old saying goes, “hope for best, plan for the worst.”. While not 1999 all over again but I am observing first-hand the signs of funding frenzy. VCs get paid to “put money to work.&#. I know not everybody agrees.

Entrepreneur 298

Entrepreneur Technical Review Balance Sheet Government 298

Both Sides of the Table

NOVEMBER 4, 2009

Stock vests for 4 years. It was 1999. He’d be employee number 3. You get 1%, you sell for $150 million and it’s in 3 years (e.g. you won the lottery). That’s an after-tax gain of $287,500 / year for 2 years. Wait a second. You didn’t get acceleration on a change of control? Sorry bud.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418