Startup Professionals Musings

APRIL 8, 2015

Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup. Every startup should have at least a couple of outside advisors who are not major investors or family members, anxious to talk to new investors and key new hires. Think twice before you jump in.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Both Sides of the Table

MAY 2, 2015

What I love about my job is getting to see teams of super-early-stage companies develop ideas that while raw have potential to make an impact on the market. For a well-funded seed company I have controversially recommended hiring a great office manager that doubles as an administrative assistant.

Operations 150

Operations Metrics Early Stage Non-Compete 150

Up and Running

DECEMBER 1, 2015

If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Make sure you understand all of your options before making any decisions. When business owners decide to go down the route of equity compensation, there are two primary options to choose between.

Equity 60

Equity Employee Stock Options Vesting 60

prosperati.com

OCTOBER 23, 2010

Hiring Of all the issues we ran into when we first built our team, hiring was the most critical. So when you first start building your team, the most important hire should be your lead architect. The cliches of hiring the best of the best is as true in Malaysia as it is in the US. Culture creation is not easy.

Offshore 40

Offshore Malaysia Developer Stock Options 40

www.drowningamerican.com

JUNE 22, 2012

Next → How we Hire for Sweat Equity (Part 2)… Posted on April 7, 2011 by Travis Biziorek. The first time we hired partners for Kibin was way back in late 2009. I’ve heard people say it’s impossible to hire good developers right now. I want to hire before I have the ability to pay anyone.

Sweat Equity 40

Sweat Equity Equity Hiring Technical Review 40

Scalable Startup

AUGUST 9, 2018

They need the money to rent offices, hire staff, and establish their initial presence (website, incorporation, marketing). At this stage you’re essentially selling yourself and your cofounders. That’s why much early stage funding is “Friends and Family”; your friends and family naturally overrate you and/or can’t say no.

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

David Teten

AUGUST 1, 2019

Joining An Early Stage Startup? Negotiate Your Equity And Salary With Stock Option Counsel Tips. Private company stock option grants: a founder’s guide to who gets what, when. How to assign stock options in early-stage startups. Guide to Startup Stock Option Grants.

Private Equity 60

Private Equity Equity Due Diligence Portfolio 60

David Teten

SEPTEMBER 10, 2019

Joining An Early Stage Startup? Negotiate Your Equity And Salary With Stock Option Counsel Tips. Private company stock option grants: a founder’s guide to who gets what, when. How to assign stock options in early-stage startups. Guide to Startup Stock Option Grants.

Due Diligence 60

Due Diligence Stock Options Covenant Private Equity 60

Berkonomics

JANUARY 7, 2021

Think of startups and early stage businesses whose entrepreneurs you know. Few entrepreneurs can do it alone, with subordinate hired help and no expert management to share the burdens, skill sets, and efforts involved in growing the enterprise. It starts with sharing the opportunity and upside. Two: Co-management.

Liquidity Event 96

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 96

ReadWriteStart

FEBRUARY 13, 2020

Public venture funding has become a valuable avenue for growth for early-stage businesses in the sector, helping to put Canada’s tech industry on the map for professionals both locally and abroad. To date, some 1,000 technology companies have hired 4,000 workers through the program. Where Canada’s Tech Talent Landscape is Today.

Canada 127

Canada Government Venture Capital Early Stage 127

View from Seed

AUGUST 6, 2015

Of late, I’ve encountered numerous potential startup candidates and newly hired employees who have no idea what their equity means. It falls on the hiring company to thoroughly explain equity options to their new employees. It falls on the hiring company to thoroughly explain equity options to their new employees.

Equity 120

Equity Employee Cap Table Stock Options 120

Both Sides of the Table

JANUARY 2, 2014

And it’s why many early-stage companies blow up. Zynga not only had many hirings & firings but ultimately it led to Mark Pincus stepping aside as CE O. It’s why I wrote a post outlining why the job of a CEO is often “chief psychologist” – especially if the company grows beyond 20 employees.

Startup 385

Startup Stock Options Cofounder Campaign 385

Startup Professionals Musings

DECEMBER 16, 2013

If the company was incorporated five years ago, and is still in early stages, with the same founding team, chances are slim that it will suddenly get back on track with you as an employee, or you as an investor. They should be asking to speak to you if you are a potential investor or a superstar hire.

Due Diligence 253

Due Diligence Sweat Equity Intellectual Property Burn Rate 253

View from Seed

AUGUST 6, 2015

Of late, I’ve encountered numerous potential startup candidates and newly hired employees who have no idea what their equity means. It falls on the hiring company to thoroughly explain equity options to their new employees. It falls on the hiring company to thoroughly explain equity options to their new employees.

Equity 120

Equity Employee Cap Table Stock Options 120

YoungUpstarts

MARCH 11, 2015

With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. Why is it important to hire an experienced valuation firm?

Valuation 100

Valuation Stock Options CPA Merger 100

Gust

APRIL 9, 2014

Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.). The Founder of a company starts by owning all the shares representing ownership of the company.

Dilution 150

Dilution Equity Vesting Stock Options 150

Startup Professionals Musings

NOVEMBER 2, 2012

If the company was incorporated five years ago, and is still in early stages, with the same founding team, chances are slim that it will suddenly get back on track with you as an employee, or you as an investor. They should be asking to speak to you if you are a potential investor or a superstar hire.

Due Diligence 244

Due Diligence Sweat Equity Burn Rate Intellectual Property 244

Startup Professionals Musings

SEPTEMBER 5, 2011

If the company was incorporated five years ago, and is still in early stages, with the same founding team, chances are slim that it will suddenly get back on track with you as an employee, or you as an investor. They should be asking to speak to you if you are a potential investor or a superstar hire.

Due Diligence 237

Due Diligence Sweat Equity Intellectual Property Entrepreneur 237

Gust

DECEMBER 8, 2013

If the company was incorporated five years ago, and is still in early stages, with the same founding team, chances are slim that it will suddenly get back on track with you as an employee, or you as an investor. They should be asking to speak to you if you are a potential investor or a superstar hire.

Due Diligence 174

Due Diligence Sweat Equity Intellectual Property Burn Rate 174

Startup Professionals Musings

AUGUST 20, 2010

If the company was incorporated five years ago, and is still in early stages, with the same founding team, chances are slim that it will suddenly get back on track with you as an employee, or you as an investor. They should be asking to speak to you if you are a potential investor or a superstar hire.

Due Diligence 229

Due Diligence Sweat Equity Intellectual Property Startup 229

Eric Friedman

JUNE 11, 2019

Whether a fundraising event, hiring, or sales/partnership opportunity- these can be especially useful to make all parties move faster. Candidate Forcing Functions – are hard because you want to hire the best people, hire them fast, and keep your OpEx low. In the end, time will kill all deals.

Term Sheet 68

Term Sheet Stock Options Early Stage Agile 68

Genuine VC

FEBRUARY 28, 2011

Nearly all startup employees receive a number of options figure in their offer. ” The details surrounding stock options are often complex and confusing for non-financially-oriented individuals. Early-Stage. Plus, at an early stage, the risk-adjusted outcome of that equity is rather low.

Startup 121

Startup Equity Vesting Salary 121

Austin Startup

SEPTEMBER 19, 2017

A strong advisor can walk you in the door to the same number of companies as 2–3 new sales hires. The more disruptive an idea, the harder it is the evaluate at an early stage. As for compensation, stock options in the range of 0.1% Never discount the power of a warm intro.

Advisory Board 48

Advisory Board Sweat Equity Marketing Vertical 48

Berkonomics

SEPTEMBER 28, 2017

And then there are options: [Email readers, continue here…] Stock options or phantom stock are the tools of early stage businesses used to attract great talent when there is not enough cash to pay market rates. a share, then options must be priced at that amount. There are some rules.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

Early Growth Financial Services

AUGUST 30, 2013

Outsourced financial services firm adds valuation to suite of services to provide early-stage companies with a comprehensive integrated-service approach to finance. Their mission in expanding their service offerings is to provide an increasingly more comprehensive financial solution for early-stage companies.

Valuation 31

Valuation San Francisco Silicon Valley Stock Options 31

Early Growth Financial Services

FEBRUARY 26, 2015

San Francisco, CA (PRWEB) February 26, 2015 Early Growth Financial Services (EGFS), an accounting and financial services firm that specializes in providing a range of outsourced financial support to early-stage companies, announces the hiring of Andy Kapur to head its Tax Practice.

San Francisco 28

San Francisco CPA SEC Stock Options 28

infochachkie.com

SEPTEMBER 24, 2011

At the early stages of your company’s life, you cannot rely on disinterested, hired guns to define your company’s key tasks. The final straw came when I asked the latest 25-year old a simple ‘yes / no’ question related to stock options. John, We have an early stage startup here in Nashville called Enterstream.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Berkonomics

AUGUST 27, 2015

Flippers financed by venture capitalists are more likely to hire executives having high level profiles and previous exit experience. The Flipper’s executives usually have significant equity holdings, either actually owned or reflected in stock options.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

Berkonomics

NOVEMBER 23, 2023

and here is the usual early-stage trap… First, a brand-new enterprise is often formed from the efforts of several “partners”, each with an expertise valued by the others. First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. Here are some rules.

Equity 62

Equity Stock Options Vesting Early Stage 62

www.startupnorth.ca

OCTOBER 23, 2010

But for every founder, there is an early employee that takes near equal risks in joining an early-stage company. 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.”

Employee 41

Employee Founder Salary Equity 41

Up and Running

SEPTEMBER 20, 2021

And as the company grows, it brings on new people and may decide to issue stock options to attract new staff and funding from investors. For instance, the cap table will help you with various possibilities while running business activities like available options and pre-money valuations faster. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

www.payne.org

SEPTEMBER 22, 2011

2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. 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. 3 Dilution. 4 Vesting.

Equity 56

Equity Employee Vesting Preferred Stock 56

Berkonomics

MAY 12, 2010

First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. An option plan should carve out an addition of about 15% of the “fully diluted” shares. a share, then options must be priced at that amount. There are some rules.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

Both Sides of the Table

DECEMBER 9, 2013

If you’re a venture-backed tech company or even an early-stage business fueled by angel or seed money I assume you have a good group of board members or advisors who will give you time to be helpful and they want to be helpful. Deal with company admin: 409a valuations, approve stock options, vote on key measures (15%).

Advisory Board 337

Advisory Board Valuation Stock Options Seed Money 337

www.paulgraham.com

APRIL 28, 2010

Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Angels and even VC firms occasionally do this, but they alsoinvest at later stages. The problems are different in the early stages.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? How much equity do early employees typically get?

Equity 40

Equity Employee Founder Cofounder 40

Hunter Walker

MAY 1, 2016

As a hiring manager, what do you look for in new grads? AJ: Startups hire just in time. Despite all the best intentions, an early-stage company that needs someone to start in June probably won’t start hiring until the last week of May. Don’t be too proud to take out the trash, literally or metaphorically.

New York City 48

New York City New York Los Angeles Startup 48