SoCal CTO

SEPTEMBER 27, 2011

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." I'll get to service providers in a later post. n = (1.2 - 1)/1.2 =.167.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

YoungUpstarts

MARCH 14, 2017

by Eliot Burdett, co-founder and CEO of Peak Sales Recruiting , and author of “ Sales Recruiting 2.0: In February, 1869, a letter to the editor of the New York Times questioned why female government employees were not paid the same as male counterparts. The good news is that the time has finally come.

Revenue 124

Revenue Sales Cofounder Technical Cofounder 124

Startup Professionals Musings

SEPTEMBER 16, 2023

But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. Excellent detailed resources are everywhere, including a classic book, “ The Startup Checklist ,” by serial entrepreneur and founder of the New York Angels, David S. Rounding out the team with employees and freelancers.

Intellectual Property 261

Intellectual Property Entrepreneur Angel Groups Social Media 261

David Teten

AUGUST 19, 2019

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60

Revenue Technical Review Software Review Equity 60

Startup Professionals Musings

MAY 14, 2023

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

OCTOBER 16, 2022

Supportive co-founder and executive positions. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. They want to share your satisfaction in success, maybe as a reward for their own mistakes and learning earlier in life in their own businesses.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Both Sides of the Table

JANUARY 4, 2014

The lack of team cohesion and respect for individuals has probably been one of the biggest weaknesses of Zynga – at least from nearly EVERY employee I’ve ever talked to who worked there. ” Of course we all go into businesses expecting to be aligned with our co-founders but over time life changes.

Founder 340

Founder Sacramento Cofounder Technical Review 340

YoungUpstarts

JANUARY 10, 2020

by Zain Jaffer, serial entrepreneur and the Founder and CEO of Zain Ventures. When it occurs, the consequences can be swift and devastating, wreaking potential havoc on a once steady stream of revenue. The loss of these major customers can have a dramatic impact on both internal (employees) and external contributors (investors).

Customer 347

Customer Development Team Review Advisory Board Private Equity 347

Both Sides of the Table

OCTOBER 15, 2014

Much has been written about when it is time to hire a “professional CEO” to run a startup company and of course that has long been a norm in Silicon Valley when founders find that their inexperience may be a limiting factor in company growth ( know as the Peter Principle ). I like technical founders so this wasn’t an issue.

Founder 309

Founder CTO Hire Silicon Valley Leadership 309

Startup Professionals Musings

NOVEMBER 28, 2020

But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever. Excellent detailed resources are everywhere, including a classic book, “ The Startup Checklist ,” by serial entrepreneur and founder of the New York Angels, David S. Rounding out the team with employees and freelancers.

Intellectual Property 404

Intellectual Property Startup Angel Groups Social Media 404

Steve Blank

APRIL 26, 2022

They offered desperate founders more cash but insisted on new terms, rewriting all the old stock agreements that previous investors and employees had. Startups that can’t find product/market fit and/or generate sufficient revenue and/or lacked patient capital are scrambling for dollars – and the bottom feeders are happy to help.

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

ReadWriteStart

NOVEMBER 20, 2023

” — Phil Norton, Founder of Leave Dates In today’s digital age, software subscriptions have become integral to business operations. ” — Carl Jenson, Founder of Compare Bank. Carl Jenson, the Founder of Compare Bank, emphasises the importance of cutting meeting expenses by adopting virtual meeting solutions.

Software Review 138

Software Review Technical Review Retention Cost 138

Startup Professionals Musings

AUGUST 19, 2020

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Up and Running

OCTOBER 7, 2019

However, as a founder of a small business or startup, you’re juggling many things. KPIs can (and should) be used as a communication tool to align everyone in the organization so employees are empowered to take initiatives in achieving business goals. KPIs Every Founder Should Track. “What gets measured gets done.” . Sales KPIs.

Founder 71

Founder Retention Metrics Technical Review 71

Up and Running

JULY 28, 2022

Generally, the size is based on the number of employees and annual receipts for a given period. Small Business Administration , an organization is considered to be a small business if their: Firm revenue ranges from $1 million to $40 million Number of employees is between 100 and 1,500. Develop a founders agreement.

Small Business 167

Small Business Intellectual Property Cofounder Software Review 167

YoungUpstarts

JUNE 24, 2015

by Richard Milam , the Founder and CEO of EnableSoft Incorporated. The summer brings humidity, heat, vacations and the well-known fact that employee productivity decreases this time of year. This plunge in productivity has critical impacts on a business’s efficiency and revenues. Have an employee appreciation day.

Employee 100

Employee Software Review Technical Review Software 100

ReadWriteStart

DECEMBER 15, 2022

Client work serves as an additional source of revenue to form new startups. This outside work provides a valuable source of revenue able to be used to fund operations. Over time, this revenue reduces the dependency on outside venture capital sources. Keep Employees Engaged When on The Bench.

Incubator 188

Incubator Startup Software Developers Software Development 188

Steve Blank

MARCH 16, 2016

To most founders a startup is not a job, but a calling. Founders can now access the largest pool of risk capital that ever existed –in the form of Private Equity (Angel Investors, family offices , Venture Capitalists (VC’s) and Hedge Funds.). (BTW, What does this mean for startup founders? Here’s the thing most founders miss.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Startup Professionals Musings

JANUARY 18, 2020

Supportive co-founder and executive positions. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. They want to share your satisfaction in success, maybe as a reward for their own mistakes and learning earlier in life in their own businesses.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Up and Running

JULY 18, 2017

As a founder, you’ve probably been focused on writing your business plan , building out your financial forecasts to position yourself to get funding, and managing the day-to-day minutia of running a business. Founders of young organizations sometimes feel like they’re under a microscope. It’s true, your employees are watching.

Founder 115

Founder United Kingdom Leadership Washington 115

This is going to be BIG.

MAY 27, 2014

It was a company whose product I believed in and whose founder I liked, but a firm lobbed in a term sheet at a price 33% higher than what I had offered using a very light agreement meant for a much earlier stage company. Then, I read about the idiotic comments made by a co-founder of Rap Genius. Perhaps we all should. No, probably not.

Term Sheet 143

Term Sheet Founder Cofounder Software Review 143

Startup Professionals Musings

JANUARY 28, 2015

One 11-year study of over 200 companies, detailed in “ Corporate Culture and Performance ,” found that those working on their culture improved revenue by 516%, and increased net income by 755%. While codes of behavior do not guarantee an ethical culture, they do clarify desired behavior and articulate for employees what is expected of them.

Founder 120

Founder Software Review Offshore Startup 120

ReadWriteStart

DECEMBER 8, 2023

According to Gergo Vari, the founder of Lensa, if your startup is ready to ride the metaverse wave, staying informed and investing in the skills and expertise needed for this new era are crucial. Incorporating metaverse technologies can help fuel customer engagement, streamline business operations, and expand revenue streams.

Technical Review 133

Technical Review Generative AI Startup Agile 133

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

YoungUpstarts

OCTOBER 13, 2020

by Simone Semprini, CEO & Co-Founder, TourScanner. The reduction of the business trips of their employees goes in that direction. All employees can decide where to work and where to live. Companies will push employees to opt for virtual meetings instead of business trips. Effect of the lockdown in the travel industry.

Technical Review 278

Technical Review United States China Cofounder 278

Scott Edward Walker

OCTOBER 19, 2020

In a couple of cases, the founders played lawyer on their own; in the other cases, the founders either used (i) a Web service that did not address IP issues or (ii) an inexperienced law firm. This would arise as a result of a founder improperly “moonlighting” (i.e., Any IP created by a founder (e.g.,

IP 52

IP Software Review Founder Technical Review 52

The Next Web

NOVEMBER 6, 2013

Rick Boerebach is a co-founder of ZEEF.com , a curated link directory built by passionate experts. If your startup’s goal is to sell a product or service but you’re having a hard time with your revenue model, affiliate marketing might be the perfect match to give you that much-needed boost. What is affiliate marketing?

Affiliate 134

Affiliate Revenue Internet Marketing 134

Startup Professionals Musings

NOVEMBER 9, 2020

One of the biggest challenges in changing your lifestyle from an employee to starting your own business, is focusing on the right ownership elements, versus having a boss who sets the business goals, and provides performance feedback. Employees can be much more productive if they fully understand strategic issues and focus correspondingly.

Founder 397

Founder Employee Entrepreneur Revenue 397

ReadWriteStart

AUGUST 28, 2012

But when it comes to core technical skills, more and more entrepreneurs are opting to partner with technical co-founders rather than hiring someone for an in-house position. I really believe that what’s most important for a founder is the ability to have a vision for the company, make sales and hire well. Laura Roeder , LKR.

Technical Review 131

Technical Review Cofounder Founder Software Review 131

Startup Professionals Musings

MARCH 23, 2011

I’ll try to offer some guidelines to address these issues, but I generally recommend you keep the day job until your new company is producing real revenue. Otherwise, I suggest that founders be up-front with their employers, with an honest commitment that the “side” work on the potential startup will not jeopardize committed results.

Founder 233

Founder Startup Cofounder Angel Investor 233

The Startup Magazine

NOVEMBER 27, 2020

When we think about employee handbooks, we immediately think only big established businesses with a good number of employees would need it but what is the minimum number of employees that a startup or a small business should have before they have an employee handbook? Founders Look At Employees Differently.

Employee 155

Employee Startup Cofounder Hiring 155

Hearpreneur

FEBRUARY 21, 2024

2- It can affect team communication Photo Credit: Andre Oentoro It's hard to qualify employees doing only bare minimum tasks into engaged employees. This attitude of quiet quitting or work-to-rule will also make it hard for managerial positions to make decisions, especially when they have to motivate employees with low engagement.

Entrepreneur 112

Entrepreneur Employee Revenue LLC 112

Hearpreneur

FEBRUARY 21, 2024

2- It can affect team communication Photo Credit: Andre Oentoro It's hard to qualify employees doing only bare minimum tasks into engaged employees. This attitude of quiet quitting or work-to-rule will also make it hard for managerial positions to make decisions, especially when they have to motivate employees with low engagement.

Entrepreneur 112

Entrepreneur Employee Revenue LLC 112

YoungUpstarts

NOVEMBER 19, 2020

People refers to the management and employees that are currently employed by the business. Committed employees and tenured management teams can act as a value driver as they are directly involved with the direction and growth of your company. Processes refers to operating procedures and employee handbooks.

Exit Strategy 246

Exit Strategy Intellectual Property Valuation Metrics 246

YoungUpstarts

MAY 5, 2020

by Itamar Gero, founder and CEO of SEOReseller.com . You can, however, make sure you do your part in keeping your employees and yourself safe from the disease. During this time, it’s also important to safeguard the morale of your employees. The PPP’s main purpose is to keep small business employees on the payroll.

Small Business 227

Small Business SBA Small Business Administration SEO 227

Steve Blank

SEPTEMBER 5, 2018

Jeff Katzenberg has a great track record – head of the studio at Paramount, chairman of Disney Studios, co-founder of DreamWorks and now chairman of NewTV. With fewer than 10 employees but almost $2-billion dollars in the bank, they plan on jumping right in. ” Fire, Ready, Aim. He just hired Meg Whitman. And it may work.

Lean 335

Lean Burn Rate Startup IPO 335

The Startup Magazine

AUGUST 11, 2023

At the pre-seed stage, when the creator has a concept, the founder’s background, educational qualifications, domain experience, previous ventures, market size, and the complimentary talents brought by the cofounders are some of the most critical variables to consider before investing in a startup.

Seed Stage 126

Seed Stage Technical Review Early Stage Due Diligence 126