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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. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." Lead Engineer 0.5 – 1 5+ years experience Engineer 0.33 – 0.66

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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

“It kinda sucks to be engineer #1.”. That’s what a couple of my friends – engineers at Google and Bloomberg who have been following the rise of startup culture with intrigue – told me recently. They were referring to non-founder engineers, most commonly the first hire for technology businesses. Engineer #1?

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What is it Like to Negotiate a VC Round?

Both Sides of the Table

In the old days there usually weren’t convertible notes on early-stage deals and there weren’t party rounds with 20 angels or 6 seed funds. So how DOES a VC think about financings at early stages? How much is in the option pool? It’s very simple. Why do investors care about this?

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. The Pocket Negotiator is very early-stage attempt to aid in the negotiating process itself. ff Venture Capital hired two full-time engineers to build out Totem. Fincura specializes in serving lenders.

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How to pick a co-founder

venturehacks.com

Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Engineer heavy startups are common now, so doubling or tripling your development team at the outset is incredible.

Cofounder 101
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When The VC Asks: About Your Hiring Plan

Hunter Walker

If you’re scaling a service, the difference between an average smart engineer and a few dozen people who have successfully done it before with Google, Facebook, YouTube, Dropbox is enormous. Accordingly, some of their capital raise was aimed at hiring two mobile iOS engineers. Sounds great. Will You Be Hiring for Culture Fit?

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Changing Equity Structures for Early Startup Employees

www.instigatorblog.com

.&# But having thought about this for some time, I’m not sure the numbers provided as guidelines above really do incent early employees to have an emotional ownership of the product and company. This is especially true when you think of a tech startup, where the first few hires are typically engineers/programmers.

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