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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." I'll get to service providers in a later post.

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Why Early-Stage VCs Should Be Careful About Intros from Bankers

Both Sides of the Table

There is one source I never liked and no early-stage VC should – investment bankers. But as a source of deal flow it is last on my list and both entrepreneurs and VCs should be careful about working with bankers on an early-stage (seed, a-round) deal. [no, They are venture bankers not investment bankers.

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The Importance of Proprietary Deal Flow in Early-Stage VC

Both Sides of the Table

As an early-stage investor that is not always aligned with my goal, which I would express as, “pay the right price for the stage & risk in a way that is fair to the founders yet preserves our ability to grow into our valuation at the next financing event.” I would welcome you in an M&A process.

Deal Flow 347
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Put A Coin In It! Invest In Early Stage Startups To See Maximum ROI

YoungUpstarts

Investing has always (and will always) come with a long laundry list of liabilities that can deter even the most experienced investors from making a generous contribution to a startup or early-stage company they believe in. The technology that powers up any developing start-up or company is the foundation of its projected success.

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4 Essential Hires If You’re Starting a Business in 2020

Up and Running

It might seem easier to put off thinking about your first essential new hires. Try to do it all and you’ll spend a lot of time learning new skills (that you’ll eventually hire for) when you should be focusing on growing your business. Hire someone who understands Generation Z (or your target demographic). A marketing maven.

Hiring 77
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How to Configure Your Startup Team

Both Sides of the Table

I am fond of quoting that about 70% of my investment decision of an early-stage company is the team. Don’t hire a homogenous team. Don’t hire “relationship management” sales people too early. Resist the temptation to build a group of “C Level” execs in an early stage business.

Cofounder 388
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Extremely Valuable Tips for Creating a Financial Forecast During the Early Stages of an Entrepreneurial Journey

Up and Running

First, understand your finances. Objectively reviewing your finances is important, and this is a prerequisite to creating a forecast. Review sales goals and look to see if there are any aspects of your business in need attention, and therefore financing. Consequences of your plan. Look at the market and your competition.