YoungUpstarts

FEBRUARY 1, 2020

by Bryce Welker, founder of Crush The CPA Exam. These are: Revenue Recognition issues. Share-based Compensation. Accounting for Income Taxes. Revenue Recognition. This accounting principle determines the exact conditions in which revenue is recognised and accounted. Stock Option Expensing. .

CPA 165

CPA Stock Options Valuation Stock 165

Both Sides of the Table

JULY 29, 2010

People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?&#

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

The Startup Magazine

JUNE 1, 2023

By Daniel Sokolovksy, Co-Founder and CEO, WARP and Troy Lester, Co-Founder and CRO, WARP The dissolution of Silicon Valley Bank (SVB) was more than just a bank collapse, it was a reality check for both startups and the VCs that fund them. We’re hitting record revenue months, weeks, and margins. That includes us.

Early Stage 123

Early Stage Los Angeles Silicon Valley Cofounder 123

Both Sides of the Table

AUGUST 28, 2009

And I made a version of this company-wide speech to our employees: “Look. I know that we haven’t brought in revenue as quickly as we had hoped. They haven’t hit their revenue targets. Reach out to the founders, not the staff. Don’t overset expectations for your employees on the way in.

PR 331

PR Software Review Ireland Germany 331

Up and Running

SEPTEMBER 20, 2021

And as the company grows, it brings on new people and may decide to issue stock options to attract new staff and funding from investors. Founders can apply the information to instantly ascertain what percentage of the startup they have to propose a new investor. It takes a lot to start a business. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

The Next Web

AUGUST 12, 2013

Editor’s note: This is a guest post by Christian Reber, CEO and co-founder of Berlin-based 6Wunderkinder. Define how you want to motivate your employees every day to produce high-quality and industry-leading results. Many founders don’t deal well with people leaving, but I am probably one of the worst.

Cofounder 119

Cofounder CTO Hire Startup Europe 119

Both Sides of the Table

APRIL 22, 2010

It’s still important advice for startup founders and something that I’m passionate about. They make terrible employees. Why do job hoppers make such bad employees at startups? -. You’re a startup founder. You start fighting with your co-founder whom you thought you understood. That’s OK.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

Austin Startup

NOVEMBER 29, 2017

Tim O’Reilly, Founder at O’Reilly Media and promoter of open source and Web 2.0 Let’s have a look at what early stage founders can expect in terms of oxygen. Namely, windfall revenue from oil means that the Texas taxman does not collect personal or corporate income taxes (on the state level). However, prices are rocketing.

Early Stage 48

Early Stage Austin Silicon Valley Texas 48

Both Sides of the Table

SEPTEMBER 28, 2013

For starters let me use “CEO” as a proxy to include her “inner circle” which might mean co-founders or might just mean senior execs of the business. The Mind of the Founder. The mind of a founder is wired differently than most people. The startup CEO was not the original founder. Runway of cash.

Startup 417

Startup Dilution San Diego Stock Options 417

The Startup Magazine

AUGUST 6, 2021

Without them, you cannot earn any revenue. You can search for co-founders who will contribute with capital, or skills, and share profits and equity with them. If your vision is powerful enough, you can make up for this by offering recruits stock options. Many startups recruit employees in this way.

Limited Liability Company 166

Limited Liability Company Silicon Valley Business Model Stock Options 166

ReadWriteStart

JANUARY 28, 2022

The market regards equity as an ownership “share” in a corporation’s income revenue stream. Also, equity is utilized to incentivize employees to work together toward a similar goal, whether that objective is to become the next unicorn or to be acquired by a major corporation. Equity for Co-founders.

Valuation 108

Valuation Equity Warrant Common Stock 108

VC Cafe

SEPTEMBER 16, 2021

She makes money for the platform that hosts her without receiving the legal and financial protections of employee status, or the stock options typically given to the platform’s engineers, designers, and managers. Pre-seed founders building interesting tech in the creator economy space?

Startup 207

Startup Social Media Venture Capital Audio 207

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? I know how to structure around that to protect the founders from getting screwed on a multiple liquidation preference. Stock Option plans. How will you price the next round? Your A round? Me: I know.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Scalable Startup

AUGUST 9, 2018

In their quest for sustainable growth, the elusive dream for most first time founders is that first funding. This can either come from the founder(s) own bank account or from outside investors. Option Two: Once your product or service is up and running and gaining traction. Option Three: Or don’t raise funding.

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

www.startupnorth.ca

OCTOBER 23, 2010

Home Events Contact Jobs StartupIndex Founders versus early employees by David Crow on September 10th, 2009 in Resources Not everyone can be a founder. We talk about the founders of startups and companies. We focus on the founders. The founders get press coverage. How do you compensate early employees?

Employee 41

Employee Founder Salary Equity 41

Ben's Blog

APRIL 28, 2010

In this post, I describe why we prefer to fund companies whose founder will run the company as its CEO. As we looked at the history of great technology companies, we discovered that founders ran an overwhelming majority of them for a very long time, including: Acer—Stan Shih. Thomas Watson, Sr. The innovation business. Moral authority.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

The Next Web

SEPTEMBER 16, 2012

Do you get along with the employees? The best general rule of thumb is that if your role is to generate revenue for the company, then you are in Bucket X. If your role is not actively creating revenue, then you are in Bucket Y. What about company stock options? Long term goals? What will you be doing Day 1?

Stock Options 141

Stock Options Startup Stock Salary 141

Both Sides of the Table

NOVEMBER 4, 2009

Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. When I was CEO of my first company (where I admittedly F’d up everything before I figured it all out) we initially calculated for people how much there options were going to be worth some day.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Gust

DECEMBER 8, 2011

Likewise, founders can benefit from understanding basic characteristics of the overall legal structure, formation and governance documents, rights and responsibilities of team members, etc. Determine who will serve on the Board of Directors and in executive officer positions (usually founders). Offer letters for employees.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Scott Edward Walker

NOVEMBER 2, 2011

Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ). If you hire any employees, make sure you don’t misclassify them as an independent contractor or fail to pay them at least the minimum wage (see post here ). Button-down IP ownership and assignment issues (see post here ).

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

Gust

NOVEMBER 4, 2011

This discussion expands on my Quora answer to a specific question: “ Why were the stock options of MySpace employees worthless even though the company was sold to News Corporation for hundreds of millions? ” The complete story includes a startup-within-a-startup, investments and exits by two VC firms, and some genuine corporate drama.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Berkonomics

APRIL 4, 2024

Start-ups with one founder rarely have or need a board of directors. The number of employees grows. These events, one or all, usually are triggers for the founders to seek to create a board for oversight and guidance. In fact, such a board would seem out of place in a one-person company.

Covenant 48

Covenant Software Review Stock Options Vesting 48

Gust

SEPTEMBER 17, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? I know how to structure around that to protect the founders from getting screwed on a multiple liquidation preference. Stock Option plans. How will you price the next round? Your A round? Him: On metrics.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

infochachkie.com

SEPTEMBER 24, 2011

For instance, if a consultant proposes to help you with public relations, pay them a commission equivalent to the greater of a flat fee per story placed or a percentage of revenue generated from the PR coverage. The final straw came when I asked the latest 25-year old a simple ‘yes / no’ question related to stock options.

Equity 40

Equity Silicon Valley Cofounder PR 40

Scott Edward Walker

OCTOBER 27, 2015

We charge a flat fee of $2,000, plus filing fees, for up to three co-founders and it includes unlimited phone calls and emails. Thus, founders never have to worry about picking-up the phone and asking their lawyers questions. Indeed, we have done more than 300 Startup Packages and the appeal is obvious: no billable hours.

Intellectual Property 40

Intellectual Property Accredited Investor Vesting Delaware 40

www.paulgraham.com

APRIL 28, 2010

I think it would help founders to understand funding better—notjust the mechanics of it, but what investors are thinking. And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. There never has to be atime when you have no revenues.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

Listen to this episode if you want to hear about a founder who has a product and users and paying customers … and is trying to figure out how to take his company to the next level and grow faster. How many employees would a medium-sized business have in your definition? You can’t have 5,000 employees. Jason: Yeah.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

ReadWriteStart

JUNE 15, 2012

While our startup founders disagreed on many details - particularly the proper role of equity - a common theme did emerge: Developer rock stars know what they’re looking for and what they want - so the onus is on the founder to communicate why his or her tech startup is special: 1. Instead, give them a revenue or profit-sharing option.

Developer 130

Developer Equity Ruby Cofounder 130

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model. These include: ·       Vesting of Founder Stock. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

ME: Of course getting tied up with that might distract you from other growth opportunities, and sometimes buyers don’t like that you’re dependent on another company for revenue. Deal A gets you your number, but your employees get a small signing bonus and no salary raises; they’ll resent you for not taking care of them.

Sales 235

Sales Term Sheet Stock Deal Structure 235

Up and Running

JUNE 19, 2015

Here’s our first one with Sabrina Parsons and Alex Blumberg (13 minutes): Listen to Episode 5: Show notes: Alex Blumberg Talks About His Life as Founder of Gimlet Media (feat. with Levi King, Founder and CEO of Creditera) – (12:56). Sabrina Parsons) – (:31). Learn more about Gimlet Media. He knew who I am, right?

Cloud 60

Cloud Small Business Silicon Valley Media 60

Growthink Blog

JULY 2, 2010

That’s a lot of money, particularly considering that Vringo only generated $20,000 in revenues last year. Which is particularly surprising since Vringo’s CEO and co-founder, Jon Medved, was formerly a venture capitalist himself. What’s most interesting is how Vringo raised the money. MILLION in estimated offering fees.

Venture Capital 85

Venture Capital Stock Options New York Angel Investor 85

Up and Running

NOVEMBER 23, 2010

But, tragically, 3 years after their apex, this firm sold for less than their annual revenue, laid off nearly the entire staff, and left common stock shareholders, my friends included, with nothing. A CEO, more so than any other employee, needs to live the company’s culture. What happened? Third: lessons from failure.

Common Stock 63

Common Stock Stock Options Stock Cofounder 63

techcrunch.com

OCTOBER 23, 2010

One of the things I do as a founder of a later stage startup is to meet with early stage entrepreneurs to help them get their companies going. In later posts I’m going to get into more detail on specific topics like hiring, raising money, what types of ideas have the potential to get big, finding your founders, and the like.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

Scalable Startup

DECEMBER 26, 2011

Startup founders tend to add people that are close to them – friends, coworkers, spouses, family, neighbors, roommates, similar age, etc. I once had an early employee at a startup I took over who was sales, marketing, receptionist and payroll. A common area of neglect in this early stage is people - Scalable People.

Los Angeles 20

Los Angeles Silicon Valley Early Stage Stock Options 20

Berkonomics

SEPTEMBER 13, 2010

Start-ups with one founder rarely have or need a board of directors. The number of employees grows. These events, one or all, usually are triggers for the founders to seek to create a board for oversight and guidance. In fact, such a board would seem out of place in a one person company.

Covenant 59

Covenant Software Review Stock Options Vesting 59