www.inc.com

SEPTEMBER 24, 2011

Employee Benefits. Should You Share Equity with Consultants? Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We But sharing equity can have pitfalls, too. Financing A Small Business. Business Taxes.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Altgate

AUGUST 25, 2012

—————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Choe opted to forgo a cash payment “in the thousands” for the equity equivalent at the time. Re-posted from post co-authored with Prof. million.

Equity 28

Equity Vesting Cap Table Technical Review 28

Agile VC

DECEMBER 4, 2014

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? This ties into this Paul Graham article: [link] /equity. This answer.

Equity 40

Equity Employee Founder Cofounder 40

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. Point Nine Capital uses 15Five for continuous employee feedback.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

ReadWriteStart

MAY 3, 2012

Offer Equity Compensation to Team Members: Generate interest in joining your team by giving equity to others with complementary skill sets to yours. With a four-year vesting schedule and a six-month “cliff” or trial period, you can get others to join in on the fun of startup, and make progress without expending cash.

Bootstrapping 137

Bootstrapping Software Review Startup Equity 137

Agile VC

DECEMBER 4, 2014

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

David Teten

OCTOBER 1, 2015

intrapreneurs, e.g., the employee of GE who is tasked with launching a new business. Not surprisingly, the list above also is ranked from least to most equity stake in an investment for the investor, relative to the cash they invest. equity that belongs to departed cofounders)? mentor VCs, e.g., most VCs. What are the timelines?

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

Gust

DECEMBER 1, 2011

Notice what is missing from this list of priorities: The company itself – that is, a business entity, most often a corporation , that will own the entire business (however defined), issue equity to founders, take investment capital , enter into contracts, make sales, pay employees and contractors, and so forth. Good stuff!

IP 114

IP Intellectual Property Equity Liquidity Event 114

Scott Edward Walker

OCTOBER 19, 2020

Accordingly, legal counsel must review all of the written agreements between the founder and his prior employer (as well as the employee handbook/manual) to determine if there are any provisions that may give the prior employer rights to the startup’s IP. . Mistake #2 – You Did Not Assign to the Company All IP Created Pre-Incorporation.

IP 52

IP Software Review Founder Technical Review 52

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 4 Vesting. 7 Salary vs Equity. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. From Payne.org Wiki. 2 Stock Classes: Common and Preferred.

Equity 56

Equity Employee Vesting Preferred Stock 56

The Next Web

AUGUST 26, 2013

I’ve seen a few businesses where the first investors took huge pieces of equity for very little money. 15-20% equity for first investors. Depending on your team and the risk of the business, you should reserve 15% to 20% of equity for the first investors you get on board. 10-20% for employees. 10-20% for employees.

Management 120

Management Cofounder Startup Bootstrapping 120

www.thedailymuse.com

SEPTEMBER 18, 2012

It’s essential to make sure you take reasonable steps to control risk in your interactions with customers, suppliers, users, employees, and the general public. Hiring employees. What’s the typical hourly cost? How much will it cost to incorporate your new start-up? Third parties and the public. Each other.

Hiring 56

Hiring LLC Intellectual Property Private Equity 56

blog.aparttimecto.com

OCTOBER 23, 2010

Flexibility - You won’t need to commit to something, either cash, equity or involving other people, upfront. Cons: Money - Unless you have cash to pay, the pool of developers willing to work for equity is small. Communication - Hiring a technical employee early on can sometimes result in a founder developer gap.

CTO Hire 40

CTO Hire Fractional CTO Equity Vesting 40

www.seriesseed.com

DECEMBER 9, 2012

We went with equity because ivestors would prefer to get equity for the following reasons: 1. One of the reasons notes have become so popular is that the equity documents were too expensive. All of those cost us as much if not more in legal time than the seed round. Posted by: toby | 03/01/2010 at 09:52 PM.

Finance 40

Finance Term Sheet Vesting LLC 40

Austin Startup

AUGUST 20, 2017

They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance. Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services. Can you acquire them at a sustainable cost?

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Both Sides of the Table

SEPTEMBER 18, 2014

Less than you’ll probably grant your most junior employees in stock options? There are a million ways to do quick, easy, low-cost rounds with prices. of the time I have no vested interest in having the debate. “But lawyers will charge much more for equity.” Try doing THAT with equity. Me: I know.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

www.metamorphblog.com

OCTOBER 23, 2010

Here’s how the pitch sounds from the engineer’s perspective: ‘For ten whole percent of equity, you will slave away to build a prototype out of my shitty idea, not have any say in the decision-making process…and oh yeah, you could be fired at any point.’ Date for a bit, then split the equity.

Founder 51

Founder Startup Cofounder Vesting 51

venturehacks.com

SEPTEMBER 22, 2011

The Equity Equation. As this nuclear winter of venture hacks continues, I thought you might enjoy our thoughts on Paul Graham’s The Equity Equation. ” Read the rest of The Equity Equation first; it is great. You have to pay market rates regardless of the equity equation. by Nivi on July 19th, 2007. Summary: 1.

Equity 40

Equity Cap Table Valuation RSS 40

venturehacks.com

MARCH 21, 2008

Or they bring you a handful of great employees. The options typically vest monthly over 1-2 years with 100% single-trigger acceleration and no cliff. Although the advisor is on a vesting schedule, you should expect them to add most of their value up-front—that’s normal. Equity is the gift that keeps on giving.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

Gust

DECEMBER 8, 2011

Readers can anticipate my next point in continuing the analogy: It makes no more sense for a non-lawyer to prepare fundamental legal, governance, equity and intellectual property documents than it would for a patient to self-diagnose and begin taking prescription-strength antibiotics or other medications. Offer letters for employees.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

www.paulgraham.com

APRIL 28, 2010

The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. 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.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Startup Lessons Learned

JUNE 9, 2020

He also has strongly held ideas about structuring a company to institutionalize these intentions to make sure the next leader, future employees, and the next board will be true to that philosophy. 47:49) Brian on the letter he wrote to employees to announce the layoffs and the response to it. (50:17) 6,000, 7,000 employees.

Silicon Valley 60

Silicon Valley Hosting Cofounder Employee 60

infochachkie.com

SEPTEMBER 24, 2011

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. Many such ‘congratulations’ will come from consultants.

Equity 40

Equity Silicon Valley Cofounder PR 40

Hunter Walker

AUGUST 24, 2014

When Google went public in August of 2004 one of the first things I did with my employee grants was sell enough to pay off my student loans. The vast majority of my future savings was (a) not vested yet and (b) tied to hope for future stock grants I’d earn. Did I work any less hard the next day because of my liquidity event?

Founder 108

Founder San Francisco Liquidity Event LP 108

ithacaVC

JUNE 20, 2011

Cost is the overriding issue for startups when it comes to properly engaging a lawyer. My general retort on this point is this: expect to incur real lawyer costs and get over it. And each award to a given employee requires a separate grant agreement laying out the terms of the grant. and (v) how to properly fire employees.

Stock Options 58

Stock Options Vesting Subscription Agreement Founder Vesting 58

Ben's Blog

APRIL 28, 2010

Andy Grove was Intel’s third employee (after the two cofounders Robert Noyce and Gordon E. This knowledge becomes the foundation on top of which a gigantic knowledge pyramid gets built which includes: Knowledge of every employee who gets hired and why. Their emotional commitment exceeds their equity stake.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Hippoland

DECEMBER 18, 2016

When you own such a large equity stake in your own company, you should be looking at the tradeoff of short term gains (your salary) vs. long term gains (the worth of your company and what it could be with the extra investment of cash that you are not taking as salary) I understand that you may have paid a pretty penny for your MBA.

Las Vegas 48

Las Vegas Salary Burn Rate San Francisco 48

Startup Professionals Musings

APRIL 19, 2010

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding equity. This problem can be avoided by incorporating immediately after early discussions, and issuing shares to the founders, with normal vesting and other participation rules. Marty Zwilling.

Non-Compete 125

Non-Compete Accredited Investor Startup Cofounder 125

www.chubbybrain.com

SEPTEMBER 28, 2011

declined Microsoft’s offer (summer 2000) to be the first enterprise software company with a.NET product (a Microsoft employee came back from a follow-up meeting with Allen and said “He reminds me of a lot of CEOs of companies that we’ve worked with… that have gone bankrupt.”). Go vest yourself.

Software Review 79

Software Review Startup Technical Review Vesting 79

Duct Tape Marketing

SEPTEMBER 30, 2022

John Jantsch (01:11): So that's a lot in the CMOs job, particularly diversity, equity, inclusion. So we're starting up some PR motions that are doing really well and executive communications, things that are usually a little bit make people nervous because you can't get straight to the cost of acquisition, the ltv.

Marketing 75

Marketing Differentiation B2C PR 75

Altgate

APRIL 28, 2012

Since 2000, I’ve been collecting information about startups, including how much founders, their lieutenants, and their employees get paid. The big difference is in equity: Startup CEOs who are not founders get 6.2 times as much equity as the lowest-paid member of their team. Vesting is a tailored way to keep execs on board.

Silicon Valley 50

Silicon Valley Vesting New York City Equity 50

ConversionXL

NOVEMBER 6, 2019

“We also got lucky and qualified for some startup benefits with companies like Rackspace, who covered our infrastructure costs for the first year,” continues Arsenault. “We It cost less than $1k to build, and they released it in 2016. Vested Technology spent $17k on their MVP. He spent $17k to launch Vested Technology’s MVP.

Sweat Equity 78

Sweat Equity Software Review Vesting Cofounder 78

www.noamwasserman.com

MARCH 26, 2012

Since 2000, I’ve been collecting information about startups, including how much founders, their lieutenants, and their employees get paid. The big difference is in equity: Startup CEOs who are not founders get 6.2 times as much equity as the lowest-paid member of their team. Vesting is a tailored way to keep execs on board.

Silicon Valley 40

Silicon Valley Vesting New York City Equity 40

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Diego Basch

JUNE 21, 2012

Because they will keep 20% equity each at the time of the acquisition, that means $6M each before taxes and vesting. This has an added advantage: GooBook employees know how acquisitions work at GooBook, and can help short-circuit the process. In other words, money problem solved. Joe and Wayne make $5M each.

Silicon Valley 78

Silicon Valley Las Vegas San Francisco Vesting 78

Gust

SEPTEMBER 17, 2014

Less than you’ll probably grant your most junior employees in stock options? There are a million ways to do quick, easy, low-cost rounds with prices. of the time I have no vested interest in having the debate. But lawyers will charge much more for equity.” Try doing THAT with equity. Him: Not so good. Me: I know.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153