CTO Hire, Pre-Money Valuation and Startup

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CTO Hire

Pre-Money Valuation

Startup

Equity for Early Employees in Early Stage Startups

SoCal CTO

SEPTEMBER 27, 2011

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. The first few people into a startup are on a spectrum of founder vs. early employee. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula.

Early Stage

Early Stage Equity CTO Hire Sweat Equity

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

JULY 22, 2010

I couldn’t understand why they wanted so many options until a friend pointed out that this just lowered their “true&# pre-money valuation (they also asked for some sharp elbowed terms in the deal). You’ll need to hire and retain talen to grow your company. I turned them down. They were nonplussed.

Valuation

Valuation Liquidation Preference Pre-Money Valuation Term Sheet

StartUpRoar

Equity for Early Employees in Early Stage Startups

Want to Know How VC’s Calculate Valuation Differently from Founders?

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