Remove Cofounder Remove Cost Remove Equity Remove Stock Options
article thumbnail

What Do Boards Actually Do?

Both Sides of the Table

I read commentary or Twitter or blogs and realize that there are also strongly held convictions that there are these evil VCs who do terrible things to mostly altruistic founders. But unlike the popular press reporting of this conflict — 80% of the time it is founder-to-founder conflict and not investor-to-founder conflict.

Cofounder 217
article thumbnail

Should You Share Equity with Consultants?

www.inc.com

Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. Parker found that equity as compensation helped build loyalty to his company -- even among consultants. But sharing equity can have pitfalls, too.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Timing: When to raise seed funding.

Scalable Startup

In their quest for sustainable growth, the elusive dream for most first time founders is that first funding. This can either come from the founder(s) own bank account or from outside investors. At this stage you’re essentially selling yourself and your cofounders. One of the easiest mistake to fix is timing.

article thumbnail

How To Start A Business The Right Way

The Startup Magazine

You can search for co-founders who will contribute with capital, or skills, and share profits and equity with them. If your vision is powerful enough, you can make up for this by offering recruits stock options. For instance, in many parts of the world, WhatsApp is the default messaging service.

article thumbnail

Incorporate before pitching to VC’s?

Gust

While you will definitely need to be a corporate entity before you can accept funding from any investor (or issue stock options to any employees), the specific corporate status of the venture at this stage is much less important to investors than its functional status.

Delaware 122
article thumbnail

Founders, Ownership and Prenuptials

Both Sides of the Table

Yesterday I wrote a blog post ( here ) in which I urged people to not have too many founders. These situations are only compounded if you have 3 or more founders. I know that many people reading this will be in companies with 3+ founders and aren’t having any friction. They agreed to all be co-founders.

Founder 251
article thumbnail

Beware The Consultant

infochachkie.com

Instead of hearing from your long lost third-cousin, you will be inundated with an avalanche of ‘congratulatory’ emails, calls and letters from people who want to relieve you of the burden of your hard-earned equity round. The final straw came when I asked the latest 25-year old a simple ‘yes / no’ question related to stock options.

Equity 40