A Smart Bear: Startups and Marketing for Geeks

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How to think about cash vs. equity compensation

A Smart Bear: Startups and Marketing for Geeks

It’s among the most-asked questions on startup forums, and an issue we’re dealing with right now at WPEngine as we bring on new employees: How do you decide how much equity (shares) to give a new employee or partner? Now consider this scenario: That same new hire quit her old job but demands the same $10,000/mo from you.

Equity 276
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WP Engine passes $100M in revenue and secures $250M investment from Silver Lake

A Smart Bear: Startups and Marketing for Geeks

This week we closed $250M in financing from Silver Lake , the premier technology private equity firm. We just announced a few more things. Late last year we passed $100M in annual recurring revenue. We’re less than 8 years old so you can do the math on growth rates and figure out that we’re on an elite trajectory.

Engineer 152
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More money if you do, more money if you don’t

A Smart Bear: Startups and Marketing for Geeks

It’s not a ruse devised by greedy vulture capitalists vying for extra points of equity. You scramble to hire ahead in support, sales, and the additional demands on engineering. “Always raise more money than you think you need.” ” – people asking you to take their money Actually, they’re right.

Revenue 270
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Why large companies acquire small companies

A Smart Bear: Startups and Marketing for Geeks

In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”. Even for startups, it takes years for a new product to become good enough to demand many millions of dollars in revenue.). Startups shouldn’t act smug about this.