SoCal CTO

NOVEMBER 14, 2012

I was just asked about a particular startup situation (seed stage, CMO hire, non-founder) and particularly what compensation and equity is appropriate. Quick & Dirty How-To: Employee Stock Option Allocations Seed Stage Compensation What are typical compensation numbers?

CTO Hire 329

CTO Hire Equity Seed Stage Option Pool 329

Startup Professionals Musings

SEPTEMBER 22, 2012

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. Thus, stock doesn’t “pay the mortgage” today, so to speak. Thus, stock doesn’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Stock Options 230

Stock Options Stock Advisory Board Startup 230

Both Sides of the Table

SEPTEMBER 6, 2010

Options are gravy - I lived through the first dot com era where we used stock options as a recruiting tool. We set our sites on our IPO price and then worked back to our current valuation and showed potential employees what we thought they could earn (with all legal caveats) if the company was successful.

Stock Options 294

Stock Options Stock Valuation Liquidation Preference 294

View from Seed

APRIL 27, 2020

Founders do not have this luxury. Most founders are going through hell right now, and that is not going away any time soon. Others are just starting out, but the financial safety net they thought they had from a spouse’s job or highly appreciated stock options has disappeared. Wait and see. This is scary.

Cofounder 194

Cofounder Software Review Portfolio Technical Review 194

Up and Running

DECEMBER 1, 2015

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. If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Finding great employees first.

Equity 60

Equity Employee Stock Options Vesting 60

Steve Blank

OCTOBER 23, 2023

Most of her lessons were applicable to any government employee venturing out to the private sector. If you find an A-player CIA officer jumping into a founder role mid-way in their career (or decide to start something yourself,) they’ll probably go on to do great things. Talk with multiple employees at the company.

Government 217

Government Advisory Board Salary Sales Cycle 217

Steve Blank

MARCH 16, 2016

To most founders a startup is not a job, but a calling. Risk capital takes equity (stock ownership) in your company instead of debt (loans) in exchange for cash. What does this mean for startup founders? Here’s the thing most founders miss. Why don’t VCs tell founders this fact? ——-. The Good News.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Berkonomics

DECEMBER 14, 2023

How about employees all the way down the line and through the corporation? But how about awarding stock options to all employees? These plans are not as popular today because of their complexity and difficulty to manage, lost in favor of simple stock option plans. Show everyone financials?

Employee 62

Employee Stock Options Stock Equity 62

Startup Professionals Musings

JULY 1, 2022

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. Thus, options don’t “pay the mortgage” today, so to speak. Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Startup Professionals Musings

MARCH 29, 2015

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. Thus, options don’t “pay the mortgage” today, so to speak. business entrepreneur shares startup stock options' Marty Zwilling.

Stock Options 120

Stock Options Stock Advisory Board Startup 120

Up and Running

MARCH 7, 2018

In my time, I learned a thing or two about the importance of preventing employee turnover. Aside from the time-consuming tasks of screening potential employees, interviewing, and re-hiring , losing and replacing employees is expensive. On average, it costs nearly three times an employee’s salary to replace them.

Employee 91

Employee Startup Salary Hiring 91

Startup Professionals Musings

APRIL 8, 2015

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. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

APRIL 10, 2016

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. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

A Smart Bear: Startups and Marketing for Geeks

SEPTEMBER 29, 2015

” He explains: Either the founders failed to achieve their goal, or – far likelier – they failed to dream big enough. The proper ambition for a tech entrepreneur should be to join the ranks of the great tech companies, or, at least, to create a profitable, independent company beloved by employees, customers, and shareholders.

Acquisition 120

Acquisition Technical Review Stock Options Employee 120

Startup Professionals Musings

DECEMBER 10, 2022

I was shocked to read an old Gallup study that indicates only 13 percent of employees worldwide are actively engaged at work, and more recent data shows only a small change in the right direction. As a startup founder or executive, you need to subvert your own troubles for the sake of the team.

Stock Options 362

Stock Options Salary Leadership Stock 362

Both Sides of the Table

MAY 27, 2013

He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. It consists of a highly intelligent and opinionated founder – Nick Halstead. Wallflower – yours truly.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Startup Professionals Musings

SEPTEMBER 25, 2019

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. Thus, options don’t “pay the mortgage” today, so to speak. Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3%

Equity 237

Equity Stock Options Advisory Board Stock 237

Both Sides of the Table

JULY 29, 2010

Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?&# I talked about the need to have a restricted stock plan for your earliest employees. You’re not screwing me – you’re screwing your fellow employees.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Feld Thoughts

SEPTEMBER 2, 2011

The founders each have common shares that will vest over four years. The vesting schedule protects each of the co-founders in case one gets hit by a bus or decides to drop the project after a short period of time. As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

YoungUpstarts

FEBRUARY 1, 2020

by Bryce Welker, founder of Crush The CPA Exam. That can affect your first-time audit in two main ways: with stock option expensing and 409A Valuations. Stock Option Expensing. . When you want to issue financials that are GAAP compliant, you need to expense your stock options. 409A Valuations.

CPA 165

CPA Stock Options Valuation Stock 165

Berkonomics

NOVEMBER 1, 2018

Formal option plans for some. Some companies, especially those financed by angel or VC investors, have good, formal stock option plans with properly priced options set to reward all employees and managers in the event of a corporate sale. Each was surprised, pleased and effusive. Consider the kinds of exits.

Stock Options 192

Stock Options Stock Distribution Programming 192

Berkonomics

OCTOBER 19, 2017

How about employees all the way down the line and through the corporation? But how about awarding stock options for all employees? These plans are not as popular today because of their complexity and difficulty to manage, lost in favor of simple stock option plans. Yes, sometimes the news is not good.

Employee 97

Employee Stock Options Stock Equity 97

The Next Web

SEPTEMBER 30, 2014

Dealing almost exclusively with first time startup founders, we tackle the following question with nearly all of our CEOs: How much equity should they give to the employees? In one instance, I told a CEO that we typically recommend a 15 percent stock options pool at seed/Series A stage. She rolled her eyes in disbelief.

Equity 154

Equity Employee Option Pool Stock Options 154

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

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. As a founder, ask yourself – does your business actually warrant VC funding?

Early Stage 146

Early Stage Los Angeles Silicon Valley Cofounder 146

Business Plan Blog

SEPTEMBER 18, 2012

Reserve 10-20% Of Your Company’s Outstanding Equity For A Stock Option Plan. It is critical for a start-up to consider this reality and reserve 10-20% of its outstanding equity for a stock option plan. 2: Issue Options According To Value Added And Risk Taken. Whatever the percentage, it pays to plan ahead.

Stock Options 61

Stock Options Stock Option Pool Dilution 61

Startup Professionals Musings

MARCH 11, 2020

I was shocked to read an old Gallup study that indicates only 13 percent of employees worldwide are actively engaged at work, and more recent data shows only a small change in the right direction. As a startup founder or executive, you need to subvert your own troubles for the sake of the team.

Product 322

Product Stock Options Salary Leadership 322

Startup Professionals Musings

FEBRUARY 7, 2020

There is no better way to feel the pressures and unknowns, as well as the excitement, of a startup than to work in one as an employee, and realize that the highs and lows are even greater for the founder. Founders stock and stock options are worth nothing for the first few years.

Silicon Valley 315

Silicon Valley Entrepreneur Stock Options Flash 315

Both Sides of the Table

MAY 2, 2015

Clearly the founders and senior executives of a company are the most valuable resources and their time should be maximized on the most valuable tasks. I watched Ophir Tanz achieve much in his early days at the Founder & CEO at GumGum, which has now become quite a large business. And it turns out that employee reviews matter.

Operations 150

Operations Metrics Early Stage Non-Compete 150

YoungUpstarts

JULY 17, 2020

by Juan Pablo Segura, President and Co-Founder of Babyscripts. Are you paying money for SaaS services that are no longer relevant or can be taken on by employees? Support Your Employees. Often you are asking your employees to do more for less, and it’s imperative that they feel valued and supported.

Startup 287

Startup Wisconsin Stock Options Dividend 287

Reid Hoffman

DECEMBER 10, 2020

These are really good founders and I think this is an interesting space.” Further, when additional people kept mentioning Airbnb to me and praising the founders, I should have asked myself how a smart, capable person would refine the idea.). Those two minutes showed me that Airbnb’s founders wanted to play in the big leagues.

Hosting 69

Hosting Hockey Stick IPO Silicon Valley 69

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

Startup Professionals Musings

OCTOBER 21, 2017

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. Thus, options don’t “pay the mortgage” today, so to speak. Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3%

Stock 140

Stock Stock Options Advisory Board Startup 140

Genuine VC

SEPTEMBER 5, 2012

The following is a first pass at a checklist of items for Founder CEOs to take care of in the first couple weeks after they’ve closed their initial round of seed funding. Foundation for New Employee Hires Formulate and socialize with the Board acceptable compensation bands (both salary and equity options) for new employees.

Founder 156

Founder Cap Table Stock Options PR 156

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

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

Hunter Walker

JUNE 7, 2022

In these moments there tends to be a lot of content to help CEOs and founders manage through a downturn, but not as much for those team members impacted. Obviously this can be a bit tricky but in small companies when you have kind founders and you’ve been a great team member, it’s ok to ask. Extend Your Stock Option Exercise Period.

Stock Options 94

Stock Options Vesting Stock Valuation 94