SoCal CTO

SEPTEMBER 27, 2011

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. The first few people into a startup are on a spectrum of founder vs. early employee. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Both Sides of the Table

MAY 13, 2013

For the past 5 years or so Google, Facebook and a handful of tech industry giants have been quietly buying scores of early-stage startups for their talent. But the press (and I suspect many of the senior execs of these companies) don’t really explore the corrosive downside of these acquisition. The Aqui-hire Business.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

Feld Thoughts

FEBRUARY 9, 2016

Mark Suster wrote a great post yesterday titled The Resetting of the Startup Industry. ” Many companies have hired ahead of their growth rate because they had the cash to do so. I suffered through the next financing after implementing a complex structure, or a sale of the company, or a liquidation. It’s simply not true.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Up and Running

AUGUST 17, 2015

As I read stories of college dropouts who had successfully sold tech companies, or entrepreneurs with innovative ideas who made it big on Shark Tank, it became clear that there was no set path to startup success. C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on).

Entrepreneur 60

Entrepreneur Cofounder Angel Investor eCommerce 60

techcrunch.com

FEBRUARY 25, 2010

This is an anonymous guest post from a well known startup executive: When we split the atom, Einstein remarked that everything changed but our way of thinking. You could make the same argument about acquisitions and option pools. Why aren’t we surprised when three months later that company can’t hire enough engineers?

Liquidation Preference 63

Liquidation Preference Founder Option Pool Acquisition 63

Scott Edward Walker

DECEMBER 13, 2018

We have also recently handled a few “acquihires” (or “acqui-hires”) — which is a somewhat unique transaction, with a host of unusual issues. An acquihire is essentially the acquisition of a startup for its talent/team (rather than for its products or services). What is an Acquihire? How is the Deal Structured?

Founder 45

Founder Merger IP Liquidation Preference 45

www.mattbartus.com

DECEMBER 9, 2012

Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. This is usually done when the company is acquired — if the acquisition price per share of Series A is greater than $0.50, the VC will receive the spread between $0.50 and the acquisition price.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40