The Startup Magazine

JUNE 26, 2023

Avoiding Poor-Quality Work Through Referrals Rob Walters and Mike Liyeos credit Quattro Development’s success to their small but scrappy team of eight employees. Thanks to hiring both contractors and employees based on old-fashioned referrals and networking, Quattro Development now has a solid crew. “I

Cofounder 132

Cofounder Developer United States Founder 132

Both Sides of the Table

SEPTEMBER 25, 2010

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. He’s fine with equity provided it’s cheap to paper it legally. Photo credit: D. Blanchard/O’Reilly Media. and not a min.

Finance 286

Finance Term Sheet Technical Review Warrant 286

VC Cafe

FEBRUARY 27, 2024

While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets. Pre-seed tends to be about developing an MVP and generating early traction.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

YoungUpstarts

OCTOBER 19, 2018

When you’re looking for extra funds, there are typically two options: debt financing and equity financing. It’s important to understand the difference between debt financing and equity financing so when it comes time to get additional funding, you know which is the right fit for your business and how to get it.

Finance 157

Finance Equity Vesting Dividend 157

Startup Professionals Musings

FEBRUARY 8, 2013

Look at the big picture first of development, finance, and marketing/sales. How the leaders of your company handle adherence to the spirit as well as the letter of the law will be seen by all employees, customers, and investors. Passion for what they do. Ethical and diversity boundaries. No historical baggage.

Partner 258

Partner Software Review CTO Hire Equity 258

www.avc.com

SEPTEMBER 22, 2011

Employee Equity: How Much? 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. And the amount of equity you need to grant to accomplish these hires is also an art and most certainly not a science.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Austin Startup

OCTOBER 11, 2021

the world’s largest senior care network and technology platform which recently acquired global home care provider Home Instead , today announced it has raised $70 million in Series E funding and $300 million in debt financing. The round brings Honor’s total equity funding to date to $325 million and values the company at over $1.25

Technical Review 62

Technical Review Engineer Finance Technology 62

The Startup Magazine

AUGUST 11, 2023

The following is a condensed explanation of seed funding: Seed money is a form of early-stage financing that new businesses receive from investors in exchange for a share of ownership in the company. This could be a proportion of the company’s equity or investment; in other instances, it could be a portion of its later-stage profits.

Seed Stage 126

Seed Stage Technical Review Early Stage Due Diligence 126

David Teten

MARCH 14, 2018

Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. Another example is Correlation Ventures ($300M+ AUM), a VC firm which co-invests in financings with at least one other new outside VC. – Provide hands-on operational support for portfolio companies.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

The Next Web

NOVEMBER 20, 2013

There are a lot of variables to go into calculating a fair equity split a startup team. These key factors must consider each employee’s role(s) within the company, the compensation they receive for their work, the people investing in the company, and the people behind the idea of the company. How important is this person’s role?

Cofounder 136

Cofounder Equity Founder Seed Stage 136

The Next Web

JUNE 15, 2012

From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. Pitfalls in sharing equity. While equity can be a great tool for compensating early on, the drawbacks are significant.

Equity 116

Equity Stock Options Vesting Stock 116

YoungUpstarts

AUGUST 20, 2019

This used to be one of the least automated components, but now software like Workday and 15Five are building platforms to assist workflow with related systems that support employee management. Finance companies now consider mobile oriented tech as part of the core work-flow. Customer Support.

Technical Review 127

Technical Review Software Review Private Equity Cofounder 127

Startup Professionals Musings

SEPTEMBER 20, 2017

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. What options do they have available to them, since they can’t sell a share of the company (no equity investment)?

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

Startup Professionals Musings

DECEMBER 23, 2013

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Need expensive resources up front.

Bootstrapping 252

Bootstrapping Sweat Equity Entrepreneur Technical Review 252

www.entrepreneur.com

SEPTEMBER 22, 2011

Entrepreneur Homepage Startups Starting a Business Home How-To Guides Startup Basics Business Ideas Business Planning Startup Financing Success Stories Home-Based Business Starting a Business Play Video How to Take a New Product from Just an Idea to a Business (Video). Financing Some Jobs Act Proposals Make Headway. July 31, 2007 |.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

YoungUpstarts

APRIL 16, 2020

If the situation is dire, you may also consider recapitalizing the business through a debt refinancing or by selling equity. See if you and your finance staff can answer these questions: When did my business become unprofitable, and what caused the change? Furlough non-essential employees. What are my top 3 costs?

Recapitalization 200

Recapitalization Forecast Software Review Finance 200

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. What is Company Equity? Types of equity. Common stock. Preferred shares.

Valuation 108

Valuation Equity Warrant Common Stock 108

Startup Professionals Musings

NOVEMBER 13, 2012

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Need expensive resources up front.

Sweat Equity 239

Sweat Equity Technical Review Bootstrapping Equity 239

The Startup Magazine

JANUARY 24, 2020

From finding a qualified pool of applicants to interviewing, verifying references, and filing the hiring paperwork, just managing and recruiting employees is a full time job. That’s not to mention finding the right balance between too many and too few employees. Giving up too much investor equity.

Software Review 143

Software Review Startup Technical Review Hiring 143

YoungUpstarts

MARCH 4, 2019

Though personal income taxes will usually not be due until the middle of April, organizing your finances at the end of each year is an absolute necessity. Balancing Assets, Liabilities, and Owner’s Equity. The formula that your business ought to use for a balance sheet — without exception — is assets= liabilities + equity.

Balance Sheet 172

Balance Sheet Software Review Equity Cofounder 172

Both Sides of the Table

AUGUST 14, 2017

As a starting point the board is intended to have legal and financial responsibilities to a few key constituencies: shareholders, debt holders, creditors, employees, government and major parties with whom the business operates. ICOs certainly have a place in startup financing.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

Steve Blank

APRIL 11, 2013

Examples are Hollywood for movies, Milan for fashion, New York for finance and today, Silicon Valley for technology entrepreneurship. In addition to the one in Beijing, China has set up 53 additional industrial parks and in them are ~60,000 companies with 8 million employees. This was the area I visited in this trip to China.)

Programming 278

Programming Technical Review SBIR China 278

Startup Professionals Musings

SEPTEMBER 22, 2011

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Need expensive resources up front.

Sweat Equity 255

Sweat Equity Technical Review Entrepreneur Bootstrapping 255

Startup Professionals Musings

FEBRUARY 15, 2015

Angel investors and venture capitalists don’t make equity investments in non-profits. Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. What options do they have available to them, since they can’t sell a share of the company (no equity investment)?

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

Gust

DECEMBER 15, 2013

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Need expensive resources up front.

Bootstrapping 183

Bootstrapping Sweat Equity Entrepreneur Technical Review 183

www.instigatorblog.com

OCTOBER 23, 2010

Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. His company had just closed an early round of funding and he wanted to cement the employee relationships. Those first employees will take 0.5-1%

Equity 41

Equity Employee Startup Vesting 41

The Startup Magazine

MARCH 30, 2022

This is where growth financing options come into play. So what is it exactly, and to what extent can you finance the growth of your startup using it? A quick overview of growth financing. Tip: carefully review your financing options. The scope of growth financing products. The advantages. Final thoughts.

Finance 136

Finance Dilution Green Revenue 136

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Employee Benefits. Should You Share Equity with Consultants? a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. Start-up | Mondays. Innovation | Fridays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Startup Professionals Musings

SEPTEMBER 15, 2012

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Individual and institutional donations.

Angel Investor 218

Angel Investor Technical Review Exit Strategy Equity 218

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? This seems like an easy topic – debt where there is appropriate cash flow, equity when there isn’t.  What are the reasons to choose one financing structure over another?

Finance 83

Finance Bootstrapping Startup Equity 83

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? This ties into this Paul Graham article: [link] /equity. This answer.

Equity 40

Equity Employee Founder Cofounder 40

Steve Blank

APRIL 1, 2020

As part of these operating changes, make sure your heads of HR and finance recognize that they have entirely new jobs. Nothing is more important than assuring the company can continue to pay its employees. Award equity to employees equal to the value of their reduced salaries. Try to protect the most vulnerable employees.

South Korea 333

South Korea Salary Business Model China 333

David Teten

AUGUST 19, 2019

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. We don’t have any equity or control over the business….”. “As Bigfoot Capital. Decathlon Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

JULY 3, 2011

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Individual and institutional donations.

Angel Investor 238

Angel Investor Technical Review Exit Strategy Equity 238

Both Sides of the Table

FEBRUARY 6, 2013

But not anal if one founder who shares equity graciously with early employees who are treated as “co-founders” My idea startup team is heaving on tech personnel but also has strong product management. Equally – a great VP Finance can be leveraged well to take on finance, legal, HR and much of the operational tasks.

Cofounder 388

Cofounder Early Stage Startup Silicon Valley 388

A Smart Bear: Startups and Marketing for Geeks

JANUARY 4, 2018

That revenue is in on 75,000 customers, earned through the hard work of 500 employees across six offices on three continents. This week we closed $250M in financing from Silver Lake , the premier technology private equity firm.

Engineer 152

Engineer Revenue San Francisco Security 152

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Employee Benefits. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Jumpstart wasnt much at the time, just four employees working from home offices.

Arizona 40

Arizona Equity Iowa Venture Capital 40