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Equity for Early Employees in Early Stage Startups

SoCal CTO

The reality is that an early employee in a pre-funded startup that eventually raises a few rounds of capital will be diluted significantly, is down the line in preference, and will likely be locked up for a while to harvest it. Lead Engineer 0.5 – 1 5+ years experience Engineer 0.33 – 0.66 Manager or Junior Engineer 0.2 – 0.33

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Startup Advice: When to Use a Consulting CTO

rapidrollout.wordpress.com

Web Startup Lessons Advice from a CTO and Entrepreneur Home About Startup Advice: When to Use a Consulting CTO There are not many to be found. He or she might call himself a “consulting CTO,&# “freelance CTO,&# “on-demand CTO,&# “CTO on call,&# “CTO for hire,&# or just a “technology strategy advisor.&#

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Remind Me Why I Love You? (Why “In Person” is Everything)

Both Sides of the Table

I also had to negotiate a follow-on round at a portfolio company because new investors were trying to force a bit option-pool top-up that would dilute the founders and existing shareholders and existing investors were fighting over prorata rights. Last time we met I didn’t have my CTO with me. Some were interesting, some weren’t.

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Should You Negotiate Ownership Options In A Startup?

Startup Professionals Musings

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3% 3% If you are not on this list, just worry about getting whatever your peers are getting.

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Further Thoughts on Startup Operations

Both Sides of the Table

.&# Still, I’ll bet that functionally you divide areas of competence like sales & marketing, product, engineering, biz dev, etc. I usually encourage people to think about titles like, “Founder & CTO&# or “Founder & VP Marketing.&#. Dilute your cash, equity or both. and my favorite].

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New Venture Equity As Compensation Is A Long-Term Bet

Startup Professionals Musings

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3% 3% If you are not on this list, just worry about getting whatever your peers are getting.

Equity 237
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A VC: Employee Equity: How Much?

www.avc.com

The other important data point is the number of fully diluted shares. The first bracket is the senior management team; the CFO, Chief Revenue Officer/VP Sales, Chief Marketing Officer/VP Marketing, Chief Product Officer/VP Product, CTO, VP Eng, Chief People Officer/VP HR, General Counsel, and anyone else on the senior team.

Equity 64