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Should You Offer Equity Compensation to Employees?

Up and Running

In 2005, David Choe was invited to paint a number of murals at Facebook’s HQ in Palo Alto. Of course, not every equity compensation story is a David Choe Story. If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. We’ll be happy to help.

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How to Raise Money – It’s a Journey Not An Event

Steve Blank

What was a Series A round in 2005 is now a pre-seed or seed round. Pre-Seed Round Paperwork: Smart investors will typically give you minimal paperwork – either a convertible note or a SAFE (Simple Agreement for Future Equity) or a KISS (Keep It Simple Securities). Retention and low attrition are good signs of customer validation.

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The rise of the “successful” unsustainable company

A Smart Bear: Startups and Marketing for Geeks

And the same thing happened after we sold IT WatchDogs in 2005. After all, before the house of cards inevitably tumbles, private equity investors get a tidy return. After I sold Smart Bear, that division has increased revenue and profit every year, for five years, even through the 2008/2009 economic disaster.

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Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The of MySpace, Inc.

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Startup Resources

www.vccafe.com

Hundreds of startups featured since 2005, will yours be next? customer retention, churn reduction, lifetime value. YCombinator Series AA Equity Financing Documents. Founder Equity Issues. Venture Hacks equity section. Legal, Equity, etc. Seed Startups. Updated Business tools for Startups. Performable â??

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A Few Key People Really Can Make a Huge Difference

Both Sides of the Table

When you account for competition for talent, the difficulty of retention, the cost of living and the difficulty of rising above the noise – there are many advantages of staying put. They have the same trade-off decisions that you do about packing up and moving to Silicon Valley vs. staying and building locally. No Dave S. =

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