Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. They don’t want high burn rates but they will never fund slow growth. Stock option grants dilute your ownership in the company.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Both Sides of the Table

FEBRUARY 25, 2019

What should the cash burn rate of the company be and how long of a cash runway should the company maintain? cash & unallocated stock options) Should we raise capital, from whom, how much and at what price? What are the kinds of difficult tasks that need to be solved by boards?

LP 269

LP Startup Burn Rate Stock Options 269

Startup Professionals Musings

NOVEMBER 2, 2012

My advice to founders out there is to not volunteer too much, but be open and honest in the face of direct questions like the following: What is your burn rate and runway today? As an employee, you salary will likely be low, your job security low, so the job title better be large, and the stock options better be large.

Due Diligence 244

Due Diligence Sweat Equity Burn Rate Intellectual Property 244

Both Sides of the Table

MAY 2, 2015

They can show the projections on what this does to burn rate. than to have to deal with healthcare benefit options, vacation policies, health-and-safety regulations and so forth. Stock option top-ups after a few years are vital retention mechanisms. They can help you with pricing. Timing of cash payments.

Operations 150

Operations Metrics Early Stage Non-Compete 150

Startup Professionals Musings

DECEMBER 16, 2013

My advice to founders out there is to not volunteer too much, but be open and honest in the face of direct questions like the following: What is your burn rate and runway today? As an employee, you salary will likely be low, your job security low, so the job title better be large, and the stock options better be large.

Due Diligence 253

Due Diligence Sweat Equity Intellectual Property Burn Rate 253

Startup Professionals Musings

MARCH 6, 2012

Stock options, if you get them, won’t help you pay the mortgage for a least a couple of years, and the value then is totally unpredictable. What's the monthly burn rate? How many options are being offered (% of total)? Working for a startup is not a career choice, but more of a lifestyle.

Silicon Valley 246

Silicon Valley Burn Rate Startup Stock Options 246

Startup Professionals Musings

JANUARY 4, 2011

Stock options, if you get them, won’t help you pay the mortgage for a least a couple of years, and the value then is totally unpredictable. What's the monthly burn rate? How many options are being offered (% of total)? Working for a startup is not a career choice, but more of a lifestyle.

Silicon Valley 227

Silicon Valley Burn Rate Startup Stock Options 227

Startup Professionals Musings

SEPTEMBER 5, 2011

My advice to founders out there is to not volunteer too much, but be open and honest in the face of direct questions like the following: What is your burn rate and runway today? As an employee, you salary will likely be low, your job security low, so the job title better be large, and the stock options better be large.

Due Diligence 237

Due Diligence Sweat Equity Intellectual Property Entrepreneur 237

Gust

DECEMBER 8, 2013

My advice to founders out there is to not volunteer too much, but be open and honest in the face of direct questions like the following: What is your burn rate and runway today? As an employee, you salary will likely be low, your job security low, so the job title better be large, and the stock options better be large.

Due Diligence 174

Due Diligence Sweat Equity Intellectual Property Burn Rate 174

Startup Professionals Musings

AUGUST 20, 2010

My advice to founders out there is to not volunteer too much, but be open and honest in the face of direct questions like the following: What is your burn rate and runway today? As an employee, you salary will likely be low, your job security low, so the job title better be large, and the stock options better be large.

Due Diligence 229

Due Diligence Sweat Equity Intellectual Property Startup 229

Both Sides of the Table

MAY 23, 2010

the loan converts at 15-20% discout to the new money coming in) or your investor will get “warrant coverage&# which is similar to an employee stock option in that it gives the investor the right but not the obligation to invest in your company in the future at a defined priced.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

thestartuplawyer.com

FEBRUARY 24, 2010

Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder. Leave a Reply Click here to cancel reply.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

www.paulgraham.com

APRIL 28, 2010

Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Those that dont fail all seem to get boughtor go public. Every startups rule should be: spend little, and work fast.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76