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. – Hire more non-Partner staff. – Hire more Partners.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Feld Thoughts

SEPTEMBER 2, 2011

As Finance Fridays continues, we are introducing the concept of the Cap Table. This week they set out to create their cap table and hire a CTO. Equity is split 55% and 45%, but where is that officially recorded? As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

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

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.drowningamerican.com

JUNE 22, 2012

Next → How to Hire for Sweat Equity…. That being said the following is available to the right candidate: • 3-5% equity in the company (based on experience). • $50,000/year salary once we obtain funding (target: January, 2010). Musings on Life and the American Dream. Skip to primary content. Skip to secondary content.

Sweat Equity 40

Sweat Equity Equity Hiring Technical Review 40

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. Don’t hire a homogenous team. Don’t hire “relationship management” sales people too early.

Cofounder 388

Cofounder Early Stage Startup Silicon Valley 388

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

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

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

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

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

Up and Running

AUGUST 30, 2021

It can be a small and nimble startup like Origin, or a company with 50 employees and hiring more every quarter. Angel investors, venture capital firms, accelerators, and (maybe) the newer equity crowdfunding will look to see if you have previous experience in startups. The same goes for recruiting employees.

Entrepreneur 132

Entrepreneur Lean Colorado Engineer 132

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

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. 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

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

Hearpreneur

JANUARY 1, 2023

Make a budget and keep a close watch on the finances , ensuring that there are no unnecessary expenses. Our teams and employees are our biggest support during an economic downturn. Using feedback implements or engagement initiatives, keep employee expenditures lower later on by investing in teams’ satisfaction and retention now.

Entrepreneur 92

Entrepreneur Software Review Technical Review Revenue 92

Altgate

JUNE 25, 2012

. —————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. One who attracted much attention is David Choe, the graffiti artist hired to paint the company’s first headquarters. million.

Equity 44

Equity Vesting Cap Table Technical Review 44

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 170

Programming Technical Review SBIR China 170

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

MAY 30, 2022

By definition, second-stage ventures generally have 10 to 99 employees and/or $750,000 to $50 million in revenue, and see that as just the beginning. Very few startups are cash-rich enough to self-finance aggressive second-stage growth. Hire more help than helpers. There is no free lunch.

Mezzanine 368

Mezzanine Private Equity Bandwidth Metrics 368

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

The Next Web

OCTOBER 7, 2013

They were referring to non-founder engineers, most commonly the first hire for technology businesses. Quite frankly, waiting provides more assurance around employment risk without the commensurate sacrifice in equity comp. Startup employees are granted common shares out of something called an option pool.

Engineer 129

Engineer Dilution Option Pool Vesting 129

Steve Blank

MARCH 19, 2020

And the minute he talks about financing I shut up and take notes. Our first priority is the health and safety of our families, employees, customers and communities. Choices include: Hiring freeze. Award equity to employees equal to the value of their reduced salaries. Action This Day. Cut marketing by x%.

Salary 327

Salary Lean Equity Government 327

Hunter Walker

JANUARY 3, 2020

2019 didn’t herald any major innovations in how early startup employees receive equity. Which is a shame since, on the margins, the most talented hires deserve more of it. They are often more aware of what their role requires as CEO (and sometimes their own strengths vs weaknesses).

Equity 56

Equity Employee Dividend Cofounder 56

Up and Running

DECEMBER 9, 2014

Bates: Good morning and welcome to our CEO panel, “How to Fine-Tune Your Small Business Finances From Funding to Growth” which I think is the direction that we would all like to be going. I’m here with some really phenomenal CEOs who are going to talk to us today about small business finances from funding to growth.

Small Business 95

Small Business Finance Forecast Metrics 95

Up and Running

SEPTEMBER 19, 2017

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. When you accept outside money, particularly a private equity (PE) investment, however, that changes. When you accept outside money, particularly a private equity (PE) investment, however, that changes.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

VC Adventure

AUGUST 15, 2018

Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of a company’s then preferred price (because common equity sits behind preferred equity there is typically a discount applied to the FMV of common stock to account for this “overhang”).

Valuation 48

Valuation Common Stock Cap Table Software Review 48

VC Cafe

APRIL 29, 2020

This is part of Israel’s Ministry of Finance NIS 1.2 According to a survey of 87 startups by Viola Ventures , the majority of startups are taking a ‘wait and see’ approach and continue to work from home, and many will control the number of employees in the office going forward.

SBA 124

SBA Technical Review Startup 124

genylabs.typepad.com

SEPTEMBER 24, 2011

Working for Equity Instead of Cash. has an article on service firms waiving their fees and instead taking equity in their clients. Interest in this waned when the Internet bust resulted in most tech start-up equity becoming worthless, but it seems to be coming back. Not all start-up stock is created equally.

Equity 40

Equity Technical Review San Jose Stock 40

The Startup Magazine

MARCH 3, 2020

When he hired property managers, they ended up taking the majority of his profits. Despite the growing trend of working from home, he believes that office employees are not going to be going away any time soon. Investment advisors will ask you all about your finances, so be sure to also ask them about their own finances.

New York City 106

New York City Marketing Technical Review New York 106

Altgate

AUGUST 25, 2012

. —————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. One who attracted much attention is David Choe, the graffiti artist hired to paint the company’s first headquarters. million.

Equity 28

Equity Vesting Cap Table Technical Review 28

Hunter Walker

JUNE 10, 2016

HW: At Homebrew we see lots of startups wanting to serve the small/growing business segment with software tools ranging from ecommerce, to point of sale to employees backoffice and so on. But, based on our sales and the amount we we’re looking to raise, $60-$120K, it could have meant giving up over 40% equity. MC: Oh wow.

Technical Review 50

Technical Review Equity SBA Software Review 50

Growthink Blog

DECEMBER 20, 2017

The first is that we currently have awesome economic conditions: a roaring stock market, low unemployment, and solid consumer and business confidence, all of which make right now as good a time as ever to start, grow, finance, and/or sell a business. Business equity is a measurement of financial accomplishment attained and retained.

Balance Sheet 48

Balance Sheet Malaysia Indonesia Finance 48

Hunter Walker

JUNE 10, 2016

HW: At Homebrew we see lots of startups wanting to serve the small/growing business segment with software tools ranging from ecommerce, to point of sale to employees backoffice and so on. But, based on our sales and the amount we we’re looking to raise, $60-$120K, it could have meant giving up over 40% equity. MC: Oh wow.

Technical Review 48

Technical Review Equity SBA Software Review 48

www.mattbartus.com

SEPTEMBER 24, 2011

Equity for Consultants – Keep it Simple! posted Feb 3 in Equity , People issues. People tend to underestimate how much record keeping is involved with managing employees and consultants, and this just adds an unacceptable extra burden. Cooley Report Reviews Second Quarter Venture Capital Financing Trends.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40