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Equity for Early Employees in Early Stage Startups

SoCal CTO

Memo to CEOs And Founders: Share The Love Consider the proceeds of a $50-million acquisition for a 100-person company that has raised $14 million with a typical liquidation preference: Because of the liquidation preference, the investors get $14 million right off the top. Stock vests for 4 years. Manager or Junior Engineer 0.2 – 0.33

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Entreprenuer Network

SoCal CTO

skip to main | skip to sidebar SoCal CTO Thursday, March 1, 2007 Entreprenuer Network Great post by Ben Kuo - The Importance of the “Network&# to Entrepreneurs - the informal connections between people in the technology industry here who have a vested interest in helping entrepreneurs take their companies to the next level.

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The Corrosive Downside of Acquihires

Both Sides of the Table

But the press (and I suspect many of the senior execs of these companies) don’t really explore the corrosive downside of these acquisition. If I don’t commit to millions of dollars of acquisitions I will … die? Chief Vesting Officers)? So I thought I would. The Aqui-hire Business. Go do a startup.

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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

“It kinda sucks to be engineer #1.”. That’s what a couple of my friends – engineers at Google and Bloomberg who have been following the rise of startup culture with intrigue – told me recently. They were referring to non-founder engineers, most commonly the first hire for technology businesses. Engineer #1? N: exit size.

Engineer 129
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Exploiting Silicon Valley For Profit (and Maybe Fun)

Diego Basch

Because they will keep 20% equity each at the time of the acquisition, that means $6M each before taxes and vesting. This has an added advantage: GooBook employees know how acquisitions work at GooBook, and can help short-circuit the process. They like their jobs and they don’t want to be fired over a stupid acquisition.

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Startup Equity For Employees

www.payne.org

4 Vesting. Common stockholders should care about the preference, because that preference is "ahead" of the commons in any acquisition outcome. You usually dont get all of your stock up front; it vests over a period of time, starting from your first day at work. Startup Equity For Employees. From Payne.org Wiki. 3 Dilution.

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Why Uber is The Revenge of the Founders

Steve Blank

A CEO brought in from a large company came with all the big company accoutrements – org charts, HR departments with formal processes and procedure handbooks, formal waterfall engineering methodology, sales compensation plans, etc. The founders along with all the other employees would vest their stock over 4 years (earning 1/48 a month).

Founder 245