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CTO Equity - Negotiation After Funding

SoCal CTO

I received an inquiry from a reader of my blog and thought I would provide some thoughts, but would definitely welcome input: I am an unpaid CTO of a small startup. During all this time, valuation pitched to the investors was in the $1M – $3M range. Do they recognize any Startup Founder Developer Gap ? Or was it options?

CTO 167
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CTO Equity - Negotiation After Funding

SoCal CTO

I received an inquiry from a reader of my blog and thought I would provide some thoughts, but would definitely welcome input: I am an unpaid CTO of a small startup. During all this time, valuation pitched to the investors was in the $1M – $3M range. Do they recognize any Startup Founder Developer Gap ? Or was it options?

CTO 150
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Equity for Early Employees in Early Stage Startups

SoCal CTO

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. If the company's valuation is $2 million, $90k is 4.5%. the better the startup will be.

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Valuations 101: Scorecard Valuation Methodology

Gust

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Diversification across industry sectors is not as easily achieved for angels as could be accomplished in public markets, but can be achieved by co-investing with trusted angel colleagues in a broader set of businesses.

Valuation 146
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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I turned them down. They were nonplussed.

Valuation 405
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Is Going for Rapid Growth Always Good? Aren’t Startups So Much More?

Both Sides of the Table

I think I’ve read Paul Graham’s post on “ Startup = Growth ” three or four times now. “The growth of a successful startup usually has three phases: There’s an initial period of slow or no growth while the startup tries to figure out what it’s doing. I talked about some of that here.

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Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

For decades large companies have gone shopping in Silicon Valley for startups. What can companies learn from others’ failed efforts to integrate startups into large companies? The answer - there are two types of integration strategies, and they depend on where the startup is in its lifecycle. The Innovation Portfolio.