Startup Professionals Musings

JANUARY 22, 2013

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”).

Vesting 245

Vesting Common Stock Stock Founder Vesting 245

Startup Professionals Musings

JULY 19, 2013

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Should you start a company solo or find co-Founders to help you? The co-Founder relationship dilemma.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Steve Blank

APRIL 10, 2019

VC’s have just changed the ~50-year old social contract with startup employees. For most startup employee’s startup stock options are now a bad deal. In tech startups stock options were here almost from the beginning, first offered to the founders in 1957 at Fairchild Semiconductor , the first chip startup in Silicon Valley.

Stock Options 333

Stock Options Stock Vesting Common Stock 333

Steve Blank

OCTOBER 24, 2017

Why do these founders get to stay around? Because the balance of power has dramatically shifted from investors to founders. VCs competing for unicorn investments have given founders control of the board. A pre-IPO board usually had two founders, two VCs and one “independent” member. Hire a CEO to Go Public.

Founder 245

Founder Technical Review CTO Hire IPO 245

Startup Professionals Musings

AUGUST 10, 2019

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Should you start a company solo or find co-founders to help you? The co-founder relationship dilemma.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Gust

MARCH 16, 2014

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”).

Stock 175

Stock Vesting Common Stock Founder Vesting 175

Startup Professionals Musings

SEPTEMBER 25, 2019

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. 7% Product Manager,2 -.3%

Equity 237

Equity Stock Options Advisory Board Stock 237

Gust

DECEMBER 1, 2011

Notice what is missing from this list of priorities: The company itself – that is, a business entity, most often a corporation , that will own the entire business (however defined), issue equity to founders, take investment capital , enter into contracts, make sales, pay employees and contractors, and so forth.

IP 114

IP Intellectual Property Equity Liquidity Event 114

Gust

APRIL 9, 2014

The Founder of a company starts by owning all the shares representing ownership of the company. Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.). original post can be found on Quora @ [link] *.

Dilution 150

Dilution Equity Vesting Stock Options 150

Startup Professionals Musings

OCTOBER 7, 2010

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”). Vesting starts now.

Stock 214

Stock Vesting Common Stock Founder Vesting 214

Startup Professionals Musings

DECEMBER 14, 2014

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Should you start a company solo or find co-Founders to help you? The co-Founder relationship dilemma.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

The Next Web

AUGUST 26, 2013

Editor’s note: This is a guest post by Christian Reber, CEO and co-founder of Berlin-based 6Wunderkinder. 10-20% for employees. Be generous with shares to your employees, they are your capital and most important resource. But never give away shares without vesting. 60-70% for founders.

Management 120

Management Cofounder Startup Bootstrapping 120

Startup Professionals Musings

AUGUST 19, 2017

Most entrepreneurs struggle with many startup founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Should you start a company solo or find co-founders to help you? The co-founder relationship dilemma.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

www.seriesseed.com

DECEMBER 9, 2012

It would be helpful to get a California standard employee manual, employee contract/agreements, IP ownership release to company, and confidentiality. it is acquired) and (b) the employee is terminated without cause (or sometimes resigns for good reason). This is all built into a typical founder stock purchase agreement.

Finance 40

Finance Term Sheet Vesting LLC 40

Austin Startup

AUGUST 20, 2017

Of all your hires, if you have commissioned sales people, those will give you the most problems if they’re not all given an equal chance to make their quotas and achieve their personal earnings goals. Startups often hand out shares, options, and warrants for employees and for contractors rendering needed services.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. Employee Benefits. SALES & MARKETING. Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We The Goods: Your Business Toolbox | Thursdays. Finance | Tuesdays. Newsletters.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Startup Professionals Musings

OCTOBER 21, 2017

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. 7% Product Manager,2 -.3%

Stock 140

Stock Stock Options Advisory Board Startup 140

Hippoland

APRIL 10, 2016

Dear elizy : I started a company in school with two co-founders. First off, whatever you decide, you should implement vesting. Standard vesting practices in the Silicon Valley at this time of writing are 4 year vesting with a 1 year cliff. Let’s call them Ada and Bob. 15% would be incredibly generous!

Cofounder 48

Cofounder Cap Table Equity Vesting 48

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

Feld Thoughts

AUGUST 20, 2012

I read a few articles over the weekend about OnLive potentially going out of business, potentially screwing its employees, and a few other things. It’s painful and sucks when you are part of a company that fails (I know from experience – I’ve been there many times) – whether you are a founder, employee, or investor.

Recapitalization 136

Recapitalization Stock Options Vesting Equity 136

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 4 Vesting. 6 Founders / Restricted Stock. UPDATE: If youre a founder or near-founder, your equity terms are likely defined by the funding terms negotiated with the investors. Companies raise money by selling new stock after the board of directors authorizes the sale to investors.

Equity 56

Equity Employee Vesting Preferred Stock 56

Startup Professionals Musings

OCTOBER 17, 2013

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. 7% Product Manager,2 -.3%

Stock Options 224

Stock Options Stock Advisory Board Startup 224

Startup Professionals Musings

JULY 24, 2011

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened to many companies in the last few years. Advisory Board Member, 1% Senior Engineer,3 -.7%

Equity 234

Equity Advisory Board Stock Options Stock 234

Early Growth Financial Services

AUGUST 20, 2015

Employees who feel vested and part of the team are more committed to their companies. Equity plays a key role in aligning incentives, clarifying expectations, and deliverables between companies and employees. That said, it’s important to attract the right talent. 3 most common ways to make equity grants: 1.

Equity 28

Equity Founder Stock Options Vesting 28

Startup Professionals Musings

SEPTEMBER 22, 2012

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. 7% Product Manager,2 -.3%

Stock Options 230

Stock Options Stock Advisory Board Startup 230

blog.simeonov.com

FEBRUARY 22, 2010

Simeon, can you tell us how you structure ownership and control so you can fire your co-founders if necessary? The first part will dispel some myths, address the lifecycle of founder agreements and the key compensation and control parameters in them. Let’s start by dispelling some myths: There is a standard founder agreement.

Founder 44

Founder Vesting Agile Startup 44

Startup Professionals Musings

MARCH 29, 2015

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. 7% Product Manager,2 -.3%

Stock Options 120

Stock Options Stock Advisory Board Startup 120

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

Duct Tape Marketing

SEPTEMBER 30, 2022

And it was really the founder, our founder David, and he, it was really about, there has to be this better way, right? But I see people using your forms in onboarding, you know, in, you know, maybe even prep for a sales call, you know, in trying to get, you know, specs for, you know, how to quote, you know? Yes, it has.

Marketing 75

Marketing Differentiation B2C PR 75

Austin Startup

SEPTEMBER 19, 2017

For startup founders, it’s never too early to start thinking about putting together a target market advisory board. A strong advisor can walk you in the door to the same number of companies as 2–3 new sales hires. I think of this as an early test of the founding team’s sales ability. Never discount the power of a warm intro.

Advisory Board 48

Advisory Board Sweat Equity Marketing Vertical 48

Scott Edward Walker

JUNE 23, 2011

Introduction I love working with startups – and trying to protect founders and watch their backs. Not only are there key contractual issues that must be buttoned-down (like vesting and IP assignment ), but also there is a minefield of laws and regulations that must be complied with. Potential Criminal Violations Employment Laws.

Accredited Investor 82

Accredited Investor Sweat Equity Los Angeles Finder 82

Tim Keane

JANUARY 12, 2010

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet. This results in a range of sale prices; in this example from $118.6MM to $21MM. These include: ·       Vesting of Founder Stock.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Startup Professionals Musings

JUNE 20, 2010

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened to many companies in the last few years. Advisory Board Member, 1% Senior Engineer,3 -.7%

Stock 144

Stock Stock Options Advisory Board Startup 144

The Next Web

OCTOBER 7, 2013

They were referring to non-founder engineers, most commonly the first hire for technology businesses. is frequently granted ownership significantly less than that of the founders. However, at the very early stage, they are taking as much risk with their future as the founders. Engineer #1?

Engineer 129

Engineer Dilution Option Pool Vesting 129

ConversionXL

NOVEMBER 6, 2019

Mike Arsenault and his two co-founders—all with technical backgrounds—built their MVP while working full time for other SaaS companies. “We An engineer by training, Founder and CEO Larry Gadea built the MVP of Envoy’s first product, Visitors, by himself using only free versions of software. “I Rejoiner spent $0 on their MVP.

Sweat Equity 78

Sweat Equity Software Review Vesting Cofounder 78

Diego Basch

JUNE 21, 2012

The purpose of this post is to analyze the folowing problem: Joe Founder comes to Silicon Valley with a laptop full of dreams, but no money. When a partner at GiganticTree Ventures asks them how they plan to reach sales of 100M/year, they have all the right answers. A struggle between founders and VCs ensues. What should Joe do?

Silicon Valley 78

Silicon Valley Las Vegas San Francisco Vesting 78

infochachkie.com

SEPTEMBER 24, 2011

If a consultant claims they can enhance your marketing efforts, pay them based on their direct impact on your incremental sales. Unlike employee training costs, which can typically be spread over years of service, the relative return from training a consultant is modest and pricey. Passion Cannot be Outsourced. Pyramid Power.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40