Both Sides of the Table
MAY 9, 2018
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.
Startup Professionals Musings
APRIL 23, 2012
Expertise can be marketing, technical, financial, or sales. Who will be the CEO, CFO, and CTO? All partners should never forget that their allocated shares are only the beginning, and will be diluted proportionately when outside funding is later required from angels or venture capitalists. Pre-existing intellectual property.
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Both Sides of the Table
SEPTEMBER 17, 2011
.&# 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].
Startup Professionals Musings
JULY 1, 2022
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% You should also assume that your percentage will go down through dilution as the company raises additional rounds, and offer sizes will go down as the company grows. 7% Product Manager,2 -.3%
The Next Web
OCTOBER 7, 2013
Every time a startup raises capital, all common shareholders are diluted. In a CTO Salary and Equity trends report by Safire Partners, it finds non-founder equity compensation to settle out below 2 percent. All of the estimates displayed above are figures prior to any dilution. percent to 3 percent range for engineer #1s.
Startup Professionals Musings
NOVEMBER 8, 2010
Expertise can be marketing, technical, financial, or sales. Who will be the CEO, CFO, and CTO? All partners should never forget that their allocated shares are only the beginning, and will be diluted proportionately when outside funding is later required from angels or venture capitalists. Pre-existing intellectual property.
Both Sides of the Table
JULY 22, 2010
The more senior members you have (say you already have a CEO, CTO, VP marketing, VP Biz Dev, VP Products) then the less options you’ll need and vice versa. The VC’s $1 million still buys them 25% of your company – it’s you who has diluted to 60% ownership rather than 75%. That’s normal.
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