CTO Hire Founder Hiring Valuation 
Both Sides of the Table
JULY 22, 2010
Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should. Investors own 25%, the founders own 75%. I turned them down.
SoCal CTO
SEPTEMBER 27, 2011
Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." The first few people into a startup are on a spectrum of founder vs. early employee. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept.
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Steve Blank
APRIL 23, 2014
In response, venture capital firms like Sequoia and Andreessen/Horowitz are hiring new partners just to work with their portfolio companies and match them to corporations. VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup.
Both Sides of the Table
SEPTEMBER 22, 2012
“Why do founders want to take the VCs’ money? Founders will continue to take the “growth at all options” path that leads to privacy & trust creep at places like Quora. After all, growth equals high valuations and loads of venture capital! Ryan Lissack is the CTO of Maker Studios. Growth, again.
Steve Blank
OCTOBER 24, 2017
Why do these founders get to stay around? Because the balance of power has dramatically shifted from investors to founders. — Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm.
www.avc.com
SEPTEMBER 22, 2011
The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. First, a caveat.
Startup Lessons Learned
SEPTEMBER 22, 2008
The law of large numbers (of customers) says you cant help but make at least some money - your valuation is determined by how well you monetize the tidal wave of growth. In this model, you take some fraction of the lifetime value of each customer and plow that back into paid acquisition through SEM, banner ads, PR, affiliates, etc.
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