Startup Professionals Musings

SEPTEMBER 14, 2022

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. It takes real money to get into the game.

Merger 261

Merger OTC IPO Due Diligence 261

Startup Professionals Musings

DECEMBER 8, 2019

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. It takes real money to get into the game.

Merger 303

Merger OTC IPO Due Diligence 303

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. The most obvious way to explain this is with sales people. COGS” represents the amount that each sale costs you. Two-f **g-billion!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

The Startup Magazine

JUNE 1, 2023

Be honest with yourself VCs are now going to be looking closer at margins, cost structures and true sales, and product market fit. There are startups out there that are valued at a billion dollars, but because of employee salaries, assets, etc. As a founder, ask yourself – does your business actually warrant VC funding?

Early Stage 138

Early Stage Los Angeles Silicon Valley Cofounder 138

Both Sides of the Table

MAY 2, 2015

It’s such a tricky balance between being cost-focused & scrappy versus being impractical with how you spend your time. It freed up Ophir to grow out our sales organization, to work more closely with agencies, to innovate on product and to raise capital. And it turns out that employee reviews matter. And so must you.

Operations 150

Operations Metrics Early Stage Non-Compete 150

YoungUpstarts

JULY 17, 2020

The first step in any economic crisis is to evaluate your spending channels, and determine where you can cut costs. Are you paying money for SaaS services that are no longer relevant or can be taken on by employees? Support Your Employees. Of course, you want to make sure that your employees are also feeling financially secure.

Startup 287

Startup Wisconsin Stock Options Dividend 287

Both Sides of the Table

JANUARY 21, 2010

Forget to get around to setting up that Employee Stock Option Plan and want to be able to give the early guys their options at a low strike price? Consider it a sales & marketing expense for them. They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

View from Seed

AUGUST 6, 2015

When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. It falls on the hiring company to thoroughly explain equity options to their new employees.

Equity 120

Equity Employee Cap Table Stock Options 120

View from Seed

AUGUST 6, 2015

When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. It falls on the hiring company to thoroughly explain equity options to their new employees.

Equity 120

Equity Employee Cap Table Stock Options 120

YoungUpstarts

OCTOBER 24, 2017

There will be additional filing and operation costs for these entities, due to tax, accounting and legal issues. Converting will come at a higher cost. How the sale of the company is decided. If you plan to hire employees, make sure that you have the appropriate documentation. Stock Option documentation.

LLC 168

LLC Startup Stock Options Cofounder 168

Startup Professionals Musings

JANUARY 13, 2018

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. It takes real money to get into the game.

Merger 198

Merger OTC IPO Due Diligence 198

YoungUpstarts

MAY 7, 2015

Employee stock ownership plans (ESOPs) can be an attractive way for an owner to sell a company and for employees to gain an ownership stake. ESOPs are qualified retirement plans that buy, hold and sell company stock for the benefit of employees. ESOPs generally increase the after-tax proceeds of a sale.

Stock 100

Stock Employee Private Equity Valuation 100

Startup Professionals Musings

AUGUST 26, 2018

There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. Public ownerships usually lends prestige and credibility to your sales, marketing, and acquisition efforts, but it may work counter to your vision of saving the world. Exposure to increased liability risk.

Exit Strategy 128

Exit Strategy IPO Initial Public Offering SEC 128

Startup Professionals Musings

MAY 3, 2014

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. It takes real money to get into the game.

Merger 246

Merger OTC IPO Stock 246

Gust

APRIL 9, 2014

Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.). The Founder of a company starts by owning all the shares representing ownership of the company. original post can be found on Quora @ [link] *.

Dilution 150

Dilution Equity Vesting Stock Options 150

Startup Professionals Musings

JUNE 6, 2014

There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. Public ownerships usually lends prestige and credibility to your sales, marketing, and acquisition efforts, but it may work counter to your vision of saving the world. Exposure to increased liability risk.

IPO 236

IPO Initial Public Offering Startup Small Business Administration 236

Hearpreneur

DECEMBER 31, 2017

Along with the capital costs of this investment, there was also a steep learning curve that resulted in rookie mistakes. In 2018 I fully expect to move past the initial cost and mistakes and reap from these investments. For example, this year we invested in some expensive software. Thanks to Ruth Kudzi ! #7-

Entrepreneur 65

Entrepreneur Stock Options Programming Washington 65

Startup Professionals Musings

AUGUST 7, 2016

There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. Public ownerships usually lends prestige and credibility to your sales, marketing, and acquisition efforts, but it may work counter to your vision of saving the world. Exposure to increased liability risk.

IPO 120

IPO Initial Public Offering SEC Stock Options 120

Up and Running

JUNE 21, 2011

Make sure your key employees are incentivized. Key managers who are not the sole shareholders of the business can create a huge conflict of interest during a sale and hold shareholders hostage during sale negotiations. Strong service providers can add substantial value to a sale process- in fact, they should pay for themselves.

Sales 86

Sales Investment Bankers CPA Stock Options 86

Startup Professionals Musings

JUNE 15, 2015

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. It takes real money to get into the game.

Merger 120

Merger OTC IPO Due Diligence 120

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. Employee Benefits. SALES & MARKETING. 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 The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Newsletters.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Berkonomics

APRIL 4, 2019

Others worry that we will latch onto individual line items within financial data and engage in inquisitions regarding telephone bills, marketing costs and other tactical line items in detailed financial statements. That is one of the many costs of becoming a public entity as many CEO’s have found and dealt with over the years.

Stock Options 48

Stock Options Balance Sheet Stock Common Stock 48

Gust

JULY 23, 2012

Donations of private stock enable investors, founders and employees to support charitable causes and contribute to the community while receiving simultaneous benefits in the form of substantial cash savings from reduced taxes as well as bypassing capital gains taxes. These assets often have a relatively low cost basis (e.g.

Stock 114

Stock Capital Gains Warrant Stock Options 114

Startup Professionals Musings

JANUARY 16, 2011

Liquidity can help attract new employees and keep current ones happy. If you have been giving stock options, employees will want you to be a public company, to exercise their rights to buy the stock and sell it at a profit. These can add millions to the cost of doing business.

IPO 223

IPO Social Media Media Exit Strategy 223

Berkonomics

APRIL 14, 2012

Others worry that investors will latch onto individual line items within financial data and engage in inquisitions regarding telephone bills, marketing costs and other tactical line items in detailed financial statements. That is one of the many costs of becoming a public entity as many CEO’s have found and dealt with over the years.

Stock Options 81

Stock Options Balance Sheet Stock Common Stock 81

Gust

DECEMBER 8, 2011

Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. Offer letters for employees. Sales contracts accounting for significant revenue. Pick a name for the new legal entity (e.g.,

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. 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.

Equity 56

Equity Employee Vesting Preferred Stock 56

Both Sides of the Table

APRIL 27, 2010

Moving on … My second post was directed at employees. If you’ve done it for a long time then I usually advise hiring managers to hire you as contractors and not full-time employees. No employees wanted to join startups – they were all looking for stable jobs. It’s a subjective topic.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Both Sides of the Table

JULY 19, 2011

When they rep you, the marginal cost of them trying to get you a slightly better deal is high for them relative to settling and moving on. On balance I usually prefer to recruit people from my network both in terms of saving costs as well as hiring people I know & trust. We’re both principals in a sale. They hold out.

Term Sheet 319

Term Sheet PR Liquidation Preference Stock Options 319

infochachkie.com

SEPTEMBER 24, 2011

For instance, many a BDC CEO has initiated a consultant to study cost cutting issues before announcing a significant layoff. If a consultant claims they can enhance your marketing efforts, pay them based on their direct impact on your incremental sales. Passion Cannot be Outsourced. Pyramid Power.

Equity 40

Equity Silicon Valley Cofounder PR 40

Both Sides of the Table

MAY 23, 2010

If no financing happened then this “note&# may not be converted and thus would be senior to the equity of the company in the case of a bankruptcy or asset sale. It’s legitimate to ask for cost cutting if you think the bridge won’t last long enough at the current burn rate. It starts as a debt instrument (e.g.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

ReadWriteStart

JULY 14, 2011

These are people with whom you can share some type of value, but not tangible value like stock options or payment. Is your head of sales an asshole but growing your company 2X a year? Advisory board members should have good, informal access to your employees so they have one more piece of information. Your advisory board?

Advisory Board 135

Advisory Board Balance Sheet Silicon Valley Cofounder 135

Tim Keane

JANUARY 12, 2010

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. This results in a range of sale prices; in this example from $118.6MM to $21MM. These include: ·       Vesting of Founder Stock. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Company Lawyer

JULY 20, 2009

Once again, please keep in mind that the documents from typical online incorporation services do not contain IP assignment provisions in connection with the purchase of founders stock or separate IP assignment documents. Hiring employees or third party contractors. Issuing stock options.

IP 67

IP Stock Options Preferred Stock Capital Gains 67

YoungUpstarts

AUGUST 17, 2011

The “benevolent” part means doing the right thing for the right reasons, for all stakeholders — in education, this means your teachers and other school employees, your students, their parents, etc. Schools can’t give stock options, but they can give praise and non-economic rewards to those who uncover a new idea that works.

Cofounder 222

Cofounder Programming Leadership Ohio 222

Small Business Force

JANUARY 1, 2012

You live and breathe the business, day in and day out, dealing with customers, employees and suppliers. This will cost you more than a breakfast, but it will be well worth it (see my previous post regarding "free advice being worth what you pay for it"). However, you often can't objectively assess product or marketing shortcomings.

Advisory Board 33

Advisory Board Stock Options Small Business Stock 33

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

How many employees would a medium-sized business have in your definition? Jason: If I’m managing my whole business with this tool, I don’t have 100 employees. you can’t have one employee because meetings are just too easy and you don’t really have them formally. You can’t have 5,000 employees.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220