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A VC: Employee Equity: How Much?

www.avc.com

The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. First, a caveat. Let's say the number is $25mm.

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Finding (And Keeping) The Right Advisors For Your Business

99u.com

Every business needs a dream team, but you cant hire for every expertise youll need. Sure, you may need developers and designers, but how about experts on your industry or people with relationships with certain prospects that you cant afford to hire? 99U RSS Feed. Select advisors based on areas of expertise. Strike early.

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Equity for Consultants – Keep it Simple!

www.mattbartus.com

We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” Do the implications of hiring independent contractors differ state to state? ” To which I normally say, “don’t bother.” Negotiating. People issues. Term Sheets.

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Startup Advice: When to Use a Consulting CTO

rapidrollout.wordpress.com

He or she might call himself a “consulting CTO,&# “freelance CTO,&# “on-demand CTO,&# “CTO on call,&# “CTO for hire,&# or just a “technology strategy advisor.&# And finally, you may be able to avoid diluting your equity. And why would you hire a technology guy who launched a failed startup?

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The Equity Equation

venturehacks.com

In practice, you raise money or hire an employee because you need to, not because you want to. Say the equity equation tells you to pay a prospective hire above market. You should still pay the hire a market rate and save the company some equity. Say the equity equation tells you to pay a prospective hire below market.

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Founders versus early employees

www.startupnorth.ca

Being an early hire at a startup gives an individual the ability to make tremendous impact on an organization as it grows – and both the founders and those hires should know it.” This should force companies to think about building value with each early hire, and not just filling a position. It’s just unfeasible.

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Using warrants to pump up your VC valuation

www.mattbartus.com

If you are a company that is fundraising, keep in mind that there are a few different levers you can pull to change the amount of dilution that the founders will experience. Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed.

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