Startup Professionals Musings

MAY 22, 2020

How complex is the capitalization table? Calculate employee stock option values and vesting times, as well as salary. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup. Think twice before you jump in.

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

Startup Professionals Musings

FEBRUARY 18, 2023

How complex is the capitalization table? Calculate employee stock option values and vesting times, as well as salary. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup. Think twice before you jump in.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Feld Thoughts

SEPTEMBER 2, 2011

This week they set out to create their cap table and hire a CTO. The founders each have common shares that will vest over four years. The vesting schedule protects each of the co-founders in case one gets hit by a bus or decides to drop the project after a short period of time. Time to update the cap table.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

Startup Professionals Musings

APRIL 10, 2016

How complex is the capitalization table? Calculate employee stock option values and vesting times, as well as salary. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup. Think twice before you jump in.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

APRIL 8, 2015

How complex is the capitalization table? Calculate employee stock option values and vesting times, as well as salary. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup. Think twice before you jump in.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

www.mattbartus.com

SEPTEMBER 24, 2011

We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” Imagine when it comes time to sell the company and the buyer says “Tell me how many shares are vested because this will impact how much we pay per share.” What are the potential issues?

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

www.payne.org

SEPTEMBER 22, 2011

4 Vesting. You usually dont get all of your stock up front; it vests over a period of time, starting from your first day at work. Vesting parameters vary widely, but a classic model is 4 year vesting, a 1 year "cliff", and then monthly or quarterly vesting after that. Startup Equity For Employees. 3 Dilution.

Equity 56

Equity Employee Vesting Preferred Stock 56