Steve Blank

OCTOBER 24, 2017

If the founder was lucky, he got to stay as chairman or CTO. The founders along with all the other employees would vest their stock over 4 years (earning 1/48 a month). Some founders have three-year vesting. Schmidt had been the CEO of Novell and previously CTO of Sun Microsystems. Some have no cliff.

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Founder Technical Review CTO Hire IPO 245

The Next Web

OCTOBER 7, 2013

It is typical for employees to vest their options over four years with a one year cliff, which means a new hire must stay on the company for at least one year to see any shares. After a year, shares will vest in monthly or quarterly splits until the full grant is vested. percent to 3 percent range for engineer #1s.

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Engineer Dilution Option Pool Vesting 129

Startup Professionals Musings

AUGUST 24, 2016

Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. Even with an agreed initial equity split, it’s smart to have Founder’s stock actually issue or vest over a period of at least two years, on a month-by-month basis.

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Equity Cofounder Technical Cofounder Intellectual Property 120

The Next Web

NOVEMBER 20, 2013

So, let’s say that one founder puts in $100,000 in seed capital, that could be worth 20 percent of a seed stage company’s valuation. So, a CEO or CTO, would get a much higher stake than an office manager or a graphic designer, as an example. How important is this person’s role?

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Cofounder Equity Founder Seed Stage 136

www.avc.com

SEPTEMBER 22, 2011

This is NOT your 409a valuation (we call that "fair value"). This "best value" can be the valuation on the last round of financing. Startups should be able to dramatically increase the value of their equity over the four years a stock grant vests. Or it can be the discounted value of future cash flows.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

thinkspace.com

SEPTEMBER 7, 2012

How long should people vest – four years? Investors routinely subject founder shares to vesting, but there is no rule that says that founders cannot, or should not, impose vesting on themselves. And the vesting doesn’t necessarily need to be time-based either. Five years? Buffer Pin It Digg Digg.

Equity 62

Equity Employee Founder CTO Hire 62

www.inc.com

SEPTEMBER 24, 2011

We had a rough time early on," says Parker, president and chief technology officer of Roving Software Inc. , As you think about how much equity to offer, have a reasonable valuation in mind thats been determined using professional advice. That way, he says, "Vesting is an encouragement for the project to be completed.".

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Fractional CTO Equity Iowa Technical Cofounder 40

Both Sides of the Table

NOVEMBER 4, 2009

Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation. Stock vests for 4 years. So a friend recently called to ask for advice on becoming the CTO of a startup. OK, you would own 0.25% of the stock.

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Stock Options Stock Liquidation Preference Option Pool 418