JANUARY 9, 2014

I recently developed a more human framework for early-stage startups to define their startup DNA and lay some foundations for a sustainable business. By trying to appeal to everyone and adding features left, right and centre, you will actually dilute your message and could end up with a complex, bloated product.

Early Stage 102

Early Stage Startup Cofounder Design 102

K9 Ventures

JUNE 12, 2012

Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing. This is because excessive capital becomes toxic for an early stage company. Plaxo’s most valuable feature was that it backed up your contacts from Outlook.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

K9 Ventures

JUNE 12, 2012

Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing. This is because excessive capital becomes toxic for an early stage company. Plaxo’s most valuable feature was that it backed up your contacts from Outlook.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105

ReadWriteStart

SEPTEMBER 10, 2010

Most entrepreneurs have no choice but to avail of this sort of financing along with the mentoring and the contacts that could come with it (doesn't always come along, though). You can get cash without diluting your ownership in the company. In 1M/1M, our preferred financing strategy is customers.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Berkonomics

DECEMBER 20, 2018

This week we contacted royalty licensing expert, the well-respected Arthur Lipper, asking the magic question. Why are you so strongly sold on royalty licensing as the most effective way to finance a tech-based early stage company? I asked him five important questions, which he answered, and I’ve summarized below.

IP 54

IP Intellectual Property Investment Bankers Product 54

David Teten

OCTOBER 1, 2015

At the same time, a direct equity investment (one where the dev shop acquires a share in the company immediately) puts the founders in a potentially uneasy position of having to dilute their company before a product is built. And it’s not just early-stage founders who notice.

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

Berkonomics

DECEMBER 20, 2018

This week we contacted royalty licensing expert, the well-respected Arthur Lipper, asking the magic question. Why are you so strongly sold on royalty licensing as the most effective way to finance a tech-based early stage company? I asked him five important questions, which he answered, and I’ve summarized below.

IP 48

IP Intellectual Property Investment Bankers Product 48

www.instigatorblog.com

OCTOBER 23, 2010

Home About Contact My thoughts & lessons learned on startups, entrepreneurship, marketing and other stuff. Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. 1% is even less after you factor in dilution.

Equity 41

Equity Employee Startup Vesting 41

Tim Keane

JANUARY 12, 2010

  (“If we can close 35% of all opportunities, and can get an opportunity by making x contacts, and there are 300 opportunities per month, then we should be able to sell 100 customers per month if we have the capital ($35 per contact) to cover the market every month.”   This results in a five-year projection of XYZ.).

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

blog.nahurst.com

JULY 19, 2010

I assume both cofounders will be diluted equally as more employees and investors get involved. 6c] Non-technical cofounder has MBA -0%: (this is my opinion) In the early days of a startup, an MBA doesnt help much. I love programming, board games, and my wife. Why should a technical cofounder get so much of the company?

Technical Cofounder 43

Technical Cofounder Cofounder Equity Salary 43

www.paulgraham.com

APRIL 28, 2010

Angels whove made money in technology are preferable,for two reasons: they understand your situation, and theyre asource of contacts and advice. The contacts and advice can be more important than the money. Whatkind of anti-dilution protection do they want? The problems are different in the early stages.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

rapidrollout.wordpress.com

JANUARY 15, 2011

By deciding to use a consulting CTO on a temporary basis, you avoid getting stalled in the earliest stages. And finally, you may be able to avoid diluting your equity. Preserve your equity by using a consulting CTO to ramp up your company before securing early-stage financing and hiring a permanent technology partner.

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

www.payne.org

SEPTEMBER 22, 2011

3 Dilution. The total preference is less of an issue in early stage companies (e.g. However, it can be a significant issue in later stage companies that have raised a lot of money. Those new shares are created out of thin air by the company, and will dilute all of the current stockholders. diluted) terms.

Equity 56

Equity Employee Vesting Preferred Stock 56

www.startupnorth.ca

OCTOBER 23, 2010

Home Events Contact Jobs StartupIndex Founders versus early employees by David Crow on September 10th, 2009 in Resources Not everyone can be a founder. But for every founder, there is an early employee that takes near equal risks in joining an early-stage company. How many early employees are forgoing salary?

Employee 41

Employee Founder Salary Equity 41

The Startup Lawyer

FEBRUARY 4, 2011

As equity in the company tends to be the currency of early stage startups, the startup should have a good foundation for assigning value in terms of equity. Most incubators take common stock and sit “side-by-side&# with the founders, but some may want some (weak) preferred stock and/or dilution protection.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

www.paulgraham.com

APRIL 28, 2010

Dilution is normal. They cant dilute you without diluting themselves justas much. And they wont dilute themselves unless they end up net ahead. So its your choicewhether you get diluted. [ Theres no real answer.There is no rational way to value an early stage startup. How much does an angel invest?

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

Mucker Lab

SEPTEMBER 7, 2023

The webinar delved into the crucial topic of company culture for early-stage startups. This entails oversimplifying culture by confining it to tangible elements, such as perks and narratives, potentially diluting its essence. The recap of the webinar is listed below with the full webinar recording.

Early Stage 78

Early Stage Seed Stage Leadership Founder 78

Reid Hoffman

NOVEMBER 14, 2018

For example, one blitzscaling tactic that Uber has employed to speed up engineering hiring is to ask each new hire for the contact information of his or her three smartest engineering friends. Uber then mails each of those contacts an offer letter. Clearly, this is riskier than actually interviewing and evaluating candidates.

Engineer 28

Engineer Burn Rate Hiring Dilution 28

www.paulgraham.com

OCTOBER 23, 2010

Like most startups, ours began with a group of friends, and it wasthrough personal contacts that we got most of the people we hired.This is a crucial difference between startups and big companies.Being friends with someone for even a couple days will tell you more than companies could ever learn in interviews. [2]

Startup 105

Startup Cofounder Software Stock 105

Up and Running

JULY 14, 2015

We appreciate you writing back and letting us know what you thought of the episode, and of course for the rest of our listeners if you are interested in contacting us, you can do that by emailing bcast@bplans.com. The cool thing is with the device like, that with the science like that, there’s a lot of early stage proving ground needed.

Incubator 60

Incubator Email Startup Oregon 60

venturehacks.com

SEPTEMBER 22, 2011

When you evaluate a candidate, ask yourself whether she is likely to increase the next round’s share price (include the dilution of her market rate options). That’s true – someone who can help you fundraise in the next round can easily make up for the added or extra dilution from the current round.

Equity 40

Equity Cap Table Valuation RSS 40