Startup Professionals Musings

MAY 8, 2022

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. The right time to jump is a function of favorable career, personal, and market circumstances. The co-founder relationship dilemma.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

SoCal CTO

MARCH 1, 2007

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.

Technical Cofounder 150

Technical Cofounder Networking Southern California Los Angeles 150

Both Sides of the Table

SEPTEMBER 29, 2013

” From the hyperbolic Jason Calacanis weighing in that “The petty VC’s did everything to deride [Naval, the co-founder of AngelList]” as though the industry was collectively s g its pants that AngelList was going to put us out of business. founder fighting. founder fighting. Both are right.

Syndicate 356

Syndicate Syndication Cofounder Early Stage 356

View from Seed

JANUARY 5, 2016

At the beginning, a startup team is typically just a couple of co-founders. What we suggest at this juncture is that founders get acclimated to the tactics of scaling beyond the founding team. What to Address During Genesis Team Building: How do we divide and conquer responsibilities as co-founders?

Founder 120

Founder Cofounder Startup Early Stage 120

Startup Professionals Musings

AUGUST 10, 2019

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. The right time to jump is a function of favorable career, personal, and market circumstances. The co-founder relationship dilemma.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Altgate

JUNE 25, 2012

Re-posted from post co-authored with Prof. —————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Founders and hires have always quit, after all, and their companies don’t always have a way to reclaim their equity.

Equity 44

Equity Vesting Cap Table Technical Review 44

Startup Professionals Musings

JANUARY 29, 2018

Of course, initially these founder’s shares were worth essentially nothing, but it doesn’t take much of an imagination to grasp the possibilities. Now is the time to talk to a qualified attorney, and get some discipline in place for the following strategies: Manage founder’s shares like gold with partners.

Stock 129

Stock Vesting Preferred Stock Cofounder 129

David Teten

MAY 7, 2019

Briefly, we think there’s a substantial market for a business which helps enterprises to execute initiatives which require coordination across diverse stakeholders, e.g., make a large sale to a critical client, or lobby for a change in regulation. We agree on an equity split, vesting, and initial compensation structure. A nonprofit?

America 60

America Technical Review Advisory Board Due Diligence 60

David Teten

JULY 10, 2019

Briefly, we think there’s a substantial market for a business which helps enterprises to execute initiatives which require coordination across diverse stakeholders, e.g., make a large sale to a critical client, or lobby for a change in regulation. We agree on an equity split, vesting, and initial compensation structure.

America 60

America Technical Review Advisory Board Due Diligence 60

Startup Professionals Musings

DECEMBER 14, 2014

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. The right time to jump is a function of favorable career, personal, and market circumstances. The co-Founder relationship dilemma.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

Steve Blank

MAY 19, 2015

Startups focus on speed since they are burning cash every day as they search for product/market fit. Equally important their VP of Marketing had brilliantly executed a stream of social media campaigns (Facebook likes and partnerships, email campaigns, etc.) These shortcuts add up and become what is called technical debt.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

Startup Professionals Musings

MAY 18, 2015

Every entrepreneur needs to understand the following basics, to be addressed at company formation, as they engage a qualified attorney to draw up the paperwork: Allocate founder’s stock commensurate with commitment. This is the purpose of a vesting schedule, which issues allocated stock over time.

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Altgate

AUGUST 25, 2012

Re-posted from post co-authored with Prof. —————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Founders and hires have always quit, after all, and their companies don’t always have a way to reclaim their equity.

Equity 28

Equity Vesting Cap Table Technical Review 28

Startup Professionals Musings

AUGUST 19, 2017

Most entrepreneurs struggle with many startup founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. The right time to jump is a function of favorable career, personal, and market circumstances. The co-founder relationship dilemma.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

The Next Web

AUGUST 26, 2013

Editor’s note: This is a guest post by Christian Reber, CEO and co-founder of Berlin-based 6Wunderkinder. But never give away shares without vesting. 60-70% for founders. As a founder you need to develop this skill very quickly. And your first community person is not likely to be your VP Marketing.

Management 120

Management Cofounder Startup Bootstrapping 120

www.avc.com

SEPTEMBER 22, 2011

To be clear, these are hires we are talking about, not co-founders. Co-founders are an entirely different discussion and I am not talking about them in this post. Or it can be a public market comp analysis. The third bracket are employees who are in the key functions like engineering, product, marketing, etc.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Startup Professionals Musings

JULY 19, 2013

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. The right time to jump is a function of favorable career, personal, and market circumstances. The co-Founder relationship dilemma.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

The Next Web

JUNE 21, 2015

Startup marketers like myself: definitely read this one as soon as possible (in fact, I’m making a promise to start it today). Suggested by: Gilles Bertaux , Growth Marketer @ Mention. Suggested by: Guillaume Cabane , Head of Marketing @ Mention. The Year without Pants by Scott Berkun. Which software company? Automattic.

PR 60

PR Startup Software Review Technical Review 60

venturehacks.com

FEBRUARY 24, 2010

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS How to pick a co-founder by Naval Ravikant on November 12th, 2009 Update : Also see our 40-minute interview on this topic. Picking a co-founder is your most important decision. It’s more important than your product, market, and investors.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

Eric Friedman

JUNE 27, 2016

Total = 0.75% for 3 advisors that vest as you see fit to help you over the next 1–4 years (more on vesting below). Big strategic advisors are the folks that add credibility to your co. from a 10 year old co. Here are the questions I like to see founders ask potential advisors; 1. Vesting Schedules.

Equity 98

Equity Vesting Cap Table Common Stock 98

Both Sides of the Table

JULY 16, 2013

Delaying going out of business gives you way more chances at product / market fit than any other strategy I know of. And revisit my point about whether you are the archetypal founder who will get tons of money thrust upon you. For all others please know that your VC has a vested interest in your trying to go big or go home.

Burn Rate 412

Burn Rate Dilution Revenue Valuation 412

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. SALES & MARKETING. Online Marketing. Bringing Innovation to Market. a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. Chip Morse , cofounder and partner with Morse, Barnes-Brown & Pendleton P.C., Finance | Tuesdays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

David Teten

OCTOBER 1, 2015

Should you co-found your company with a software development shop? I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. What are the terms of their relationship with the founder?

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

The Startup Magazine

AUGUST 11, 2017

The press release lays out Joe Zhu’s business accomplishments, but we at the magazine have seen firsthand Joe Zhu’s work behind the scenes helping struggling startups with advice and counsel on both business strategy and funding, even when he has no vested interest. SmartHealth is built upon passion and proximity.

Illinois 95

Illinois Chicago Entrepreneur Cofounder 95

Steve Blank

OCTOBER 24, 2017

Uber , Zenefits , Tanium , Lending Club CEOs of companies with billion dollar market caps have been in the news – and not in a good way. Why do these founders get to stay around? Because the balance of power has dramatically shifted from investors to founders. If the founder was lucky, he got to stay as chairman or CTO.

Founder 274

Founder Technical Review CTO Hire IPO 274

Feld Thoughts

JUNE 30, 2011

There are two founders and they’ve been talking to a VC they met several months ago. This soon to be ex-VC said something to the effect of “I can easily raise you money with a couple of phone calls, but I want to be a co-founder of the company and have an equal share of the business.&#. The answer was no and no.

Entrepreneur 162

Entrepreneur Vesting Cofounder Angel Investor 162

Feld Thoughts

APRIL 21, 2014

In the last two weeks there’s been a flurry of articles about the implications of a 25% decline in the public market value of a bunch of Internet stocks. A few months later the public markets for Internet stocks turned around and we closed a $330 million fund which ended up doing extremely well.

Stock 140

Stock Internet SEC Italy 140

Gust

NOVEMBER 4, 2011

There were two distinct classes of employee equity (issued by Intermix and MySpace, respectively) with different valuation and vesting situations—and, most significantly, a $125 million valuation cap applied to the buyout of MySpace equity that was triggered by the acquisition of Intermix. Read on for a fuller explanation. by February 2006).

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

ithacaVC

OCTOBER 9, 2014

I have talked with several student and alumni founders over the past few weeks about pre-incorporation issues. Please note that I am not addressing the juicy business issues like is there a market, do customers care, is there a good product/market fit, etc. 1. Who are your co-founders? This is a tough one.

Cofounder 61

Cofounder Vesting Equity Framework 61

Both Sides of the Table

APRIL 22, 2010

It’s still important advice for startup founders and something that I’m passionate about. But in a competitive job market you’re less likely to get the chance to tell me your sob story. You’re a startup founder. You start fighting with your co-founder whom you thought you understood.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

Both Sides of the Table

AUGUST 17, 2009

These periods of time can leave a founder very vulnerable in the future. These same people will join you and your one other co-founder (maximum) 6 months later when you’ve established the company, done your Powerpoint deck, built a prototype or product and started fund raising discussions. Research your market.

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

ConversionXL

NOVEMBER 6, 2019

Mike Arsenault and his two co-founders—all with technical backgrounds—built their MVP while working full time for other SaaS companies. “We Running comparative calculations, Arsenault figures that “two senior engineers plus a product manager/marketer for 40 hours per month, times 6 months, would be 720 hours to get to our MVP.

Sweat Equity 78

Sweat Equity Software Review Vesting Cofounder 78

ithacaVC

APRIL 29, 2011

Hypo: 3 co-founders start a business with Joe initially owning 35%, Lisa initially owning 35% and Steve initially owning 30%. Joe is CEO/Leader, Lisa is tech/science and Steve handles finance and marketing. ride around on a motorcycle) from the hard work of the continuing founders. What are the vesting increments?

Vesting 53

Vesting Cofounder Stock Options Stock 53

infochachkie.com

SEPTEMBER 24, 2011

If a consultant claims they can enhance your marketing efforts, pay them based on their direct impact on your incremental sales. Their story, market positioning, products, etc. I’ve done tech marketing and PR consulting for 20+ years – many clients with multi-year and (entrepreneurial) multi-business relationships.

Equity 40

Equity Silicon Valley Cofounder PR 40

Both Sides of the Table

AUGUST 17, 2009

The meme was kicked off by Chris Dixon with this post saying that term sheets need to be simplified and align investor / founder interests. One very important item from Chris’s original post that wasn’t picked up by Fred or Brad is founder vesting. In my first company there was no vesting in the seed round.

Founder Vesting 252

Founder Vesting Vesting Founder Term Sheet 252

www.copelandfirm.com

OCTOBER 21, 2010

Home About Fee Arrangements Location Referrals Testimonials Business Law HUB Certification Mergers & Acquisitions Startup Advice Intellectual Property Copyrights Trademarks Securities Law Debt and Bridge Financing Series A Startup Law Entity Formation Corporation LLC Series LLC RSS Founders Shares: How do you split them up?

Intellectual Property 40

Intellectual Property Founder Vesting Bridge Financing 40

ConversionXL

NOVEMBER 6, 2019

Mike Arsenault and his two co-founders—all with technical backgrounds—built their MVP while working full time for other SaaS companies. “We Running comparative calculations, Arsenault figures that “two senior engineers plus a product manager/marketer for 40 hours per month, times 6 months, would be 720 hours to get to our MVP.

Sweat Equity 50

Sweat Equity Software Review Vesting Cofounder 50