article thumbnail

Advice for CTO Founders: Don't Let Business Kill the Business

www.informationarbitrage.com

Read more » Recent Press The New York Times April 22, 2009 - A Company Plans to Market Illiquid Assets CNBC.com April 8, 2008 - Social Stock Picking Reuters April 6, 2009 - Bit.ly They might give them too much stock, and even have that stock not subject to vesting provisions. Seek advice from a mentor.

article thumbnail

Changing Equity Structures for Early Startup Employees

www.instigatorblog.com

The more that those first employees feel like founders in terms of their ownership, emotional attachment, responsibility and overall understanding of the startup process (including financing , running day-to-day activities, etc.) Immediately makes them more like owners than employees, and doesn't have the same vesting timeline.

Equity 41
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Making Decisions in Context

Austin Startup

Set any vesting schedules and expiration dates on roughly similar terms, if for no other reason just so you can track all of them correctly. Messy cap tables can come back to haunt you when you do a financing or sell the company. You will do yourself a great favor if you can maintain some uniformity in that endeavor.

article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

But the majority of technology companies that went public circa 1979-2009, with professional VCs as their investors, faced this challenge. A 20th century VC was likely to have an MBA or finance background. The founders along with all the other employees would vest their stock over 4 years (earning 1/48 a month).

Founder 245
article thumbnail

Founder's Dilemmas: Equity Splits

www.startuplessonslearned.com

When the remaining cofounders were about to close their first round of financing, their potential funder, Mayfield, was not willing to close until Kaleil and Tom bought Chieh out and reclaimed his equity. ► 2009. (88). The VCs were willing to do a $410,000 “sweetheart deal” to facilitate the buyout. .”

Equity 72
article thumbnail

ProfessorVC: 4 Lessons of Entrepreneurship

Professor VC

As I mentioned in the previous post, Jeff Fluhr (founder of StubHub) recently stopped by my Entrepreneurial Finance class to share his 4 Lessons of Entrepreneurship with the students. He raised less financing than originally planned but was able to launch the site and was running a business by the time his classmates graduated 9 months later.

article thumbnail

Why Co-Founders Are a Startup's Biggest Liability | The Startup Lawyer

thestartuplawyer.com

About the Author Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. North says: June 9, 2009 at 8:50 pm Thanks for this whole blog its the best I have found. Check it out if you haven’t [.]