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Most Common Early Start-up Mistakes

Both Sides of the Table

Assuming normal valuations at fund raising rounds you’ll be down to 6-12% after you’ve created a stock-option pool and raised capital. But these people seldom make retirement money from the stock options on these companies. You can be talking with potential employees all along the process getting them excited.

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The Equity Equation

venturehacks.com

Paul says, “Whenever you’re trading stock in your company for anything, whether it’s money or an employee or a deal with another company, the test for whether to do it is the same. Consider the opportunity cost of spending shares on employees and investors. We previously posted a table of market rates for employees.

Equity 40
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How to pick a co-founder

venturehacks.com

The best sellers can sell to customers, partners, investors, and employees. Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Build in founder vesting (a.k.a.

Cofounder 101