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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.

New Early Stage Financing Options for Entrepreneurs

Startup Professionals Musings

The good news is that he is all about helping early-stage startups. Early-stage startup. Super Angels. Series-seed round.

New Early Stage Financing Options for Entrepreneurs

Gust

The good news is that he is all about helping early-stage startups. Early-stage startup. Super Angels. Series-seed round.

Do My Early Stage Investors Own Too Much Of The Company?

Ask The VC

Question: Most VCs commented that they can not fund current cap table where the CEO and COO would get 10% equity once fully vested while the current investors have 80%. More Context: I recently joined a very early stage company as their CEO. Also, I have been offered 10% equity with 4 year vesting and 1 year cliff. At

Unusual Rounds of Early-Stage Funding & What to Know

Genuine VC

raised, the first non-friends-and-family capital, comprised of one to three institutional seed investors or larger VC funds, on a priced equity structure (though sometimes convertible note), with a valuation mechanism in place priced in the single digit millions. Find the original post  here.

How to Scale Early-Stage Investing

David Teten

Before making the decision to join ff Venture Capital , I did some research on early-stage tech investing as an asset class and how it’s evolving.

7 Seed-Stage Funding Sources To Finance Your Startup

Startup Professionals Musings

challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing.

Are You Getting Your Fair Share Of Startup Equity?

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Now comes the reality check. Martin Zwilling.

8 Ways To Get Off The Ground With Angel Investors

Startup Professionals Musings

Remember that angel investors are buying equity in your business, so they are not impressed with a customer presentation. alone.

Does Crowdfunding Work for Early Stage Growth Companies?

VC Deal Lawyer

Peerbackers – you can contribute money in return for rewards or perks.  No offers of equity or shares of ownership. based.  Thanks. .

Zachary Bogue And Matt Ocko Launch Data Collective, An Early Stage Fund For Big Data Startups

techcrunch.com

Zachary Bogue And Matt Ocko Launch Data Collective, An Early Stage Fund For Big Data Startups. Data Collective has already made 46 investments from its first fund, which it calls “comparable with other seed and early stage funds” (Ocko and Bogue wouldn’t reveal fund size.). Startups. Mobile. Gadgets.

What Is a SAFE? A Closer Look at The Simple Agreement for Future Equity

Early Growth Financial Services

Enter the SAFE, or Simple Agreement for Future Equity. SAFEs usually appear around the seed stage of funding, as it gives founders the chance to raise funding without having to begin the process of setting a valuation or issuing convertible notes. Convertible debt is a staple in startup funding.

How does equity dilution work for startups?

Gust

Equity dilution works when the same pie is divided among more people. Uncategorized company equity dilution founder investors startup

CTO Salary and Equity Trends 2009-2011

SoCal CTO

Or they are looking at Hiring a CTO and want to see what salary and equity ranges look like. Powered by Tableau I'm showing snapshots below.

CTO 117

Should You Offer Equity Compensation to Employees?

Up and Running

Of course, not every equity compensation story is a David Choe Story. In this article, I’m going to examine: What equity compensation is.

Bringing design thinking to early stage investment

The Equity Kicker

This graphic comes from a post on Venture Village about design thinking for startups but it should apply equally to investment companies.

Founder's Dilemmas: Equity Splits

Startup Lessons Learned

Setting the early equity split in stone is one of the biggest mistakes founders can make. But such a best-case approach is hazardous.

Founder's Dilemmas: Equity Splits

www.startuplessonslearned.com

Founders Dilemmas: Equity Splits. The following is an exclusive excerpt which sets up a common pitfall regarding equity splits. Contact.

The Truth About Early Stage Pre-Money Valuations

Ask the Angels

think there are three fundamental truths regarding the valuation of early stage businesses by potential investors: The first is that a pre-money valuation is ultimately an outcome of negotiation , rather than a mathematical calculation of discounted cash flow or any other metric of potential company performance. By Al Schneider.

Early stage money: The problem with PPMs

Berkonomics

By Bill Payne. Bill Payne has been actively involved in angel investing since 1980, funding over 50 companies and mentoring over 100 more.

How to think about cash vs. equity compensation

A Smart Bear: Startups and Marketing for Geeks

With WPEngine recently I had yet another question to answer: “What if I took $X/mo salary, then how much equity would you part with?

Equity 116

Startups Should Be Responsible for Explaining Equity to New Employees

View from Seed

It falls on the hiring company to thoroughly explain equity options to their new employees. Uncategorized equity VC” Full Stop.

CMO CTO COO Equity and Compensation

SoCal CTO

I was just asked about a particular startup situation (seed stage, CMO hire, non-founder) and particularly what compensation and equity is appropriate.

CTO 38

Convertible Debt, Priced Equity Rounds and Deal Timing

Gust

An impromptu Twitter debate arose among Fred Wilson, Dave McClure, Mark Suster, Chris Dixon and others about convertible debt, priced equity rounds, and the nuances of early stage financing.

Startup Equity Crowdfunding Grows in Europe (NESTA Report)

VC Cafe

investors can then, through the platform, buy small parts of this equity stake. Decision on how much equity. How investment is facilited.

Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Convertible Equity, A Better Alternative To Convertible Debt?

techcrunch.com

Convertible Equity, A Better Alternative To Convertible Debt? Startups. Mobile. Gadgets. Europe. Video. Enterprise. Venture. Social. GreenTech.

Fundraising? Be a Buyer, not a Seller

StartupCFO

Most founders raise (or try to) far too early. At the late stage ($10M+ revenue) the reverse is true. So, what’s the solution?

Viral 20

Free Startup Docs: How Much Equity Should Advisors Get?

techcrunch.com

Free Startup Docs: How Much Equity Should Advisors Get? Tags: founder-institute , Startups , equity Sponsored Ads. Startups. Mobile.

What is Sweat Equity Worth?

www.entrepreneur.com

What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Entrepreneurs often ask me how to value the sweat equity invested in their startup. But over the years, I have come to realize that sweat equity isn't the same thing as market value for your startup.

Startup Equity For Employees

www.payne.org

Startup Equity For Employees. Salary vs Equity. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. The total preference is less of an issue in early stage companies (e.g.

What happens when a company is acquired for less money than it raised in funding?

Gust

In many, if not most, seed and early stage funding scenarios, the investments are structured in LIFO order: Last In, First Out.

What is convertible equity (or a convertible security)?

Startup Company Lawyer

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. Over the past few years, convertible debt has emerged as a quick and inexpensive method for startup companies to raise money from angel investors and early stage venture funds.  Background.

Can’t attract VC money? Buy a business with private equity

The Next Web

Venture capital investors are looking for different things than private equity investors. Entrepreneur raising money vc funding

Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

Industry Experts deal terms dual class equity dual class stock Facebook Facebook IPO IPO structure terms

IPO 39

The Dark Side of Equity Crowdfunding

Fresh Inc.: The Staff Blog

If your company can be cash-flow positive with one round of financing, equity crowd funding might work for you. That all sounds terrific.

Is Convertible Debt Preferable to Equity?

Both Sides of the Table

Why many early-stage investors DO price rounds (e.g. prefer equity to convertible debt): If you’re an early stage investor (e.g.

Use Equity to Hire the Best

Fresh Inc.: The Staff Blog

Equity grants are your most powerful tool for attracting top-tier talent. Your weapon of choice, of course, is equity. And like it.

Should you raise on convertible notes or do an equity round?

Hippoland

A reader named Turner Dean recently asked me whether it’s better to raise seed money on convertible notes or straight-up equity.

Startup Game Changers: What to Focus On in Your Startup’s Early Days

Early Growth Financial Services

Discussion kicked off with what to focus on in the early days of your startup when so many things need attention. Panelists advised founders to concentrate on communication, equity, and creating first, with Steve Davis pointing out that it’s also critically important to “document stuff.” What kind of stuff?