Startup Professionals Musings

FEBRUARY 18, 2023

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

SoCal CTO

NOVEMBER 1, 2010

I had a recent email dialog with the founder of a company looking for a CTO for their startup. Was it a Startup Founder Developer Gap ? Did they really need a Startup CTO or Developer or both? Understand where they were in terms of being able to pay or was this equity-only (sweat equity only).

Technical Cofounder 241

Technical Cofounder CTO Hire Equity Sweat Equity 241

ReadWriteStart

DECEMBER 15, 2022

Startup studios continue to grow in popularity as incubators for new businesses. Rather than simply launching one startup, the startup studio model creates an organization whose business is launching startups. These can then be repeated and improved on with each successive startup.

Incubator 188

Incubator Startup Software Developers Software Development 188

Startup Professionals Musings

MAY 14, 2023

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Austin Startup

NOVEMBER 20, 2020

We’ve recently partnered with one of our favorite Austin-based startups, Favor Delivery , to make sure that Texans have opportunities and pathways to thrive in a technology-fueled economy. Interested in getting involved? Share Dream Corp TECH with your employer as an opportunity to invest in surrounding underserved communities!

Technical Review 93

Technical Review Texas Equity Programming 93

Startup Professionals Musings

JANUARY 18, 2020

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Yet credible reports on current trends tell us just the opposite.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Startup Professionals Musings

JUNE 11, 2022

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. 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. Personal loans from individuals, employees and board members.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

The Startup Magazine

NOVEMBER 30, 2022

What is Pay Equity ? Pay equity is the principle that employers should pay employees equally for doing comparable work, regardless of their gender, race, or other protected characteristic. There is no news about employees having issues with their paycheck stubs. There are several ways to narrow pay gaps among employees.

Equity 134

Equity Employee Developer Management 134

Startup Professionals Musings

OCTOBER 16, 2022

One of the biggest myths in the business world is that startups are no place for Baby Boomers, that aging generation born between 1945 and 1964. Today people over 55 are almost twice as likely to create successful startups as Gen-Y, age 20 to 34. Yet credible reports on current trends tell us just the opposite.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Up and Running

DECEMBER 1, 2015

Of course, not every equity compensation story is a David Choe Story. If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. In this article, I’m going to examine: What equity compensation is. Different types of equity compensation.

Equity 60

Equity Employee Stock Options Vesting 60

The Startup Magazine

MARCH 14, 2022

And with the technology available these days, it is convenient to invest in emerging startups. Are you wondering how to invest in startups in India? The digital startup craze. The world is about to see a new generation propagating the Indian startup investing industry. Sectors witnessing a startup boom. Media tech.

Technical Review 145

Technical Review Due Diligence India Startup 145

Startup Professionals Musings

SEPTEMBER 29, 2018

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Startup Professionals Musings

OCTOBER 13, 2013

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. Personal loans from individuals, employees and board members. As in any company, they can lead to employee problems, or messy legal issues.

Equity 207

Equity Angel Investor Technical Review Exit Strategy 207

Startup Professionals Musings

AUGUST 19, 2020

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Steve Blank

OCTOBER 23, 2023

Most of her lessons were applicable to any government employee venturing out to the private sector. The same Emotional Quotient and approach that attracts investors will also attract excellent employees. For me, personally : People in the senior ranks at startups usually call themselves operators. Read part one here.

Government 212

Government Advisory Board Salary Sales Cycle 212

The Startup Magazine

JANUARY 24, 2020

So, you’re preparing to launch a startup of your very own: congratulations! Before you start earning profits and making an impression on the startup market, you’ll want to learn from your colleagues’ common startup mistakes. If you’re committed to making your startup a success, be sure to read this guide first.

Software Review 143

Software Review Startup Technical Review Hiring 143

Austin Startup

MAY 8, 2018

Background reading: Founder Compensation: Cash, Equity, Liquidity Fatal Errors in Early Startup Hiring Early Hires: Options or Stock Given how deeply involved we are with early-stage startups hiring their first key employees, I figured it would be helpful to outline a few key principles to help entrepreneurs navigate the topic.

Employee 48

Employee Seed Stage Startup Equity 48

Startup Professionals Musings

FEBRUARY 8, 2013

A while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.” The feedback was good, but some readers asked me to be a bit more specific on attributes that might indicate an ideal startup partner. Ethical and diversity boundaries. No historical baggage.

Partner 258

Partner Software Review CTO Hire Equity 258

David Teten

MAY 20, 2016

I’ve spent a lot of time talking to colleagues at other private equity/VC firms about their tech solutions, processes, and tools used, and I am very excited about the trend of firms putting more focus into tech solutions to enhance every stage of their private market investing. I also teach Front-End Web Development at General Assembly.

Private Equity 113

Private Equity Equity Cap Table Venture Capital 113

The Next Web

NOVEMBER 20, 2013

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. There are a lot of variables to go into calculating a fair equity split a startup team. In this case, I would take your total ownership and divide it up by employee tiers.

Cofounder 136

Cofounder Equity Founder Seed Stage 136

Startup Professionals Musings

MAY 25, 2022

Business partners can be co-founders in a startup, multiple owners of an existing business, or a joint venture. You need to do the due diligence to make that decision before you sign away your equity. I was pleased to see this approach highlighted as well in a new book for startups, “ Zero to IPO ,” by Frederick Kerrest.

Technical Review 313

Technical Review Due Diligence Partner Cofounder 313

The Startup Magazine

MAY 2, 2023

As part of The Startup Magazine’s Female Founder Interview series , today we present Minué Yoshida, owner of the New York-based Yoshida Academy which offers courses to help clients in mastering public speaking and leadership skills and diversity, equity and inclusion consulting. The first step was to acknowledge our current diversity.

Founder 149

Founder Equity Leadership Hiring 149

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

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

ReadWriteStart

JULY 15, 2022

Businesses, entrepreneurs, and startups all join in the hope that they can keep their millennial workforce engaged and happy. However, the same generation is also infamous for low rates of employee engagement. After all, employee engagement has a direct correlation with business success. How Do You Stop the Millennial Hopping?

Startup 140

Startup Employee Technical Review Retention 140

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

Up and Running

OCTOBER 19, 2021

The American job market has become even more competitive amid the pandemic-fueled “Great Resignation” — the number of employees quitting their jobs peaked in April 2021 and has remained high over the past few months. . As a startup looking to hire your dream team, this news can be exciting. How to build your startup dream team.

Startup 127

Startup Salary Stock Options Employee 127

David Teten

MARCH 14, 2018

Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. I’ve listed a few more below which require meaningful startup and ongoing costs. If you’re thinking of hiring a Partner, I suggest see How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Up and Running

SEPTEMBER 19, 2017

Capital investments are like gasoline on a startup business’s metaphorical fire. If you’re like most startup CEOs, your startup has been your personal fiefdom and baby. When you accept outside money, particularly a private equity (PE) investment, however, that changes. Rule 1: Bootstrap until you have a viable product.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Both Sides of the Table

FEBRUARY 6, 2013

Final startup grind from msuster. And the folks at Startup Grind have been kind enough to invite me to present this morning in Mountain View on the topic. PMs are a vital part of a tech startup. And what your views / tips for early-stage startup teams are. figure out roles. measure performance / quality of team.

Cofounder 388

Cofounder Early Stage Startup Silicon Valley 388

The Startup Magazine

AUGUST 11, 2023

These investments are a tremendous help to your startup because they will serve as a stepping stone to reach your target eventually. Some return value must be offered to the investors for startup seed funding to be considered acceptable. When considered, “seed funding” describes the initial sums of funds a startup raises.

Seed Stage 126

Seed Stage Technical Review Early Stage Due Diligence 126

NZ Entrepreneur

SEPTEMBER 29, 2021

It is our startup sector which will drive this innovative progress. Startup founders are our ambitious problem solvers. To generate growth in a startup, it is almost always necessary to raise external capital to run the necessary. In order to understand startup governance, you need to understand risk and reward.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

Startup Professionals Musings

SEPTEMBER 14, 2016

Cash flow is a basic survival metric for every startup. Yet it always amazes me that I can find two different startups, seemingly working on the same problem, with one having a burn rate several times higher than the other. They understand startup realities. Desperate entrepreneurs lose their leverage and die young.

Burn Rate 120

Burn Rate Hockey Stick Startup Salary 120

Startup Professionals Musings

JULY 5, 2023

It’s helpful to think of startups as proceeding through several stages, which I have defined a long time ago from a funding perspective. Their real value is your access to senior advisors with experience, and other startups in the same stage. Sometimes these will ask for 5%-15% of your equity for their support services.

Incubator 305

Incubator Startup Exit Strategy Institutional Investors 305

Startup Professionals Musings

JULY 1, 2022

Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire or better? So people ask me “How many shares should I ask for or expect when I join a startup today?” Thus, options don’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Startup Professionals Musings

FEBRUARY 15, 2015

Angel investors and venture capitalists don’t make equity investments in non-profits. 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. Personal loans from individuals, employees and board members.

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

View from Seed

AUGUST 6, 2015

When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. It falls on the hiring company to thoroughly explain equity options to their new employees.

Equity 120

Equity Employee Cap Table Stock Options 120