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

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

Feld Thoughts

JANUARY 17, 2013

It’s the annual bonus, next year bonus plan, option grant refresh cycle. For many management teams, especially in rapidly growing, or mature companies, it’s an important part of their existence as culturally we’ve oriented compensation, bonuses, and future compensation around an annual cycle. Let me give an example.

Stock Options 134

Stock Options Stock Vesting Retention 134

Startup Professionals Musings

APRIL 10, 2016

The allocation of shares among the founders, and the number and size of outside investments, will tells volumes about the health, stability, and management of the business. One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

APRIL 8, 2015

The allocation of shares among the founders, and the number and size of outside investments, will tells volumes about the health, stability, and management of the business. One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

MAY 8, 2022

Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right motivated employees dilemma. Later you need specialists and managers. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

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

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

Startup Professionals Musings

AUGUST 10, 2019

Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right motivated employees dilemma. Later you need specialists and managers. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

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. Extend Your Stock Option Exercise Period. Prep your manager, peers to be references. I agree with Gokul.) but it’s not as helpful when you’re suddenly looking for a job.

Stock Options 94

Stock Options Vesting Stock Valuation 94

Up and Running

OCTOBER 13, 2022

Employee retention, for both startups and established businesses, is more important than ever. More and more employees are leaving roles to join companies that offer greater flexibility, increased benefits, higher pay, or even a more mission-driven culture. Federal income tax-free earnings until employees take distributions.

Vesting 88

Vesting Stock Valuation Stock Options 88

Both Sides of the Table

APRIL 22, 2010

They make terrible employees. Why do job hoppers make such bad employees at startups? -. You’re going to have some great days when you hit it out of the ballpark. .&# That awesome gal you hired in engineering has job options and she knows it. And he has already vested 75% of his stock options at your company.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

Gust

APRIL 9, 2014

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.). The Founder of a company starts by owning all the shares representing ownership of the company.

Dilution 150

Dilution Equity Vesting Stock Options 150

Reid Hoffman

DECEMBER 10, 2020

To honor the Alliance it had made with those former employees, Airbnb waived the usual vesting cliff so that they could exercise their stock options, and provided generous severance packages. In addition, the company redirected its recruiting team from hiring new employees to helping former employees find new jobs.

Hosting 69

Hosting Hockey Stick IPO Silicon Valley 69

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. 7% Product Manager,2 -.3%

Equity 234

Equity Advisory Board Stock Options Stock 234

Startup Professionals Musings

DECEMBER 14, 2014

Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right motivated employees dilemma. Later you need specialists and managers. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

www.inc.com

SEPTEMBER 24, 2011

Leadership & Managing | Tuesdays. LEADERSHIP & MANAGING. Employee Benefits. Managing Creativity. 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 Technology | Thursdays. Finance | Tuesdays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

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

Startup Professionals Musings

AUGUST 19, 2017

Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right motivated employees dilemma. Later you need specialists and managers. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

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. 7% Product Manager,2 -.3%

Stock 144

Stock Stock Options Advisory Board Startup 144

Startup Professionals Musings

JULY 19, 2013

Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right motivated employees dilemma. Later you need specialists and managers. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Both Sides of the Table

NOVEMBER 4, 2009

If you’re thinking about joining as the director of marketing, product management manager, senior architect, international business development lead, etc. Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. Stock vests for 4 years.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 2 Stock Classes: Common and Preferred. 4 Vesting. 5 Stock vs Options. 6 Founders / Restricted Stock. NOTE: If youre an attorney or tax accountant with experience helping startup employees with stock and option issues, drop me a note. From Payne.org Wiki.

Equity 56

Equity Employee Vesting Preferred Stock 56

www.thedailymuse.com

SEPTEMBER 18, 2012

It’s essential to make sure you take reasonable steps to control risk in your interactions with customers, suppliers, users, employees, and the general public. Hiring employees. 3 Signs Your Employees Think You Suck as a Manager. The best practical way to see if your employees really. Third parties and the public.

Hiring 56

Hiring LLC Intellectual Property Private Equity 56

Gust

DECEMBER 8, 2011

Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. Make escrow arrangements for restricted stock (i.e., Offer letters for employees. Pick a name for the new legal entity (e.g.,

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

OnlyOnce

OCTOBER 13, 2011

Policies are an important part of managing employees. When you fire an employee immediately before a major block of stock options vest, what’s the right thing to do? Vest the options. Beyond Policy. Similarly, contracts are an important part of running the commercial side of the business.

Vesting 59

Vesting Stock Options Green Stock 59

ithacaVC

JUNE 20, 2011

2. You need (or think you need) a stock option plan: granting stock options (and other forms of equity compensation to employees like restricted stock) should be done under a written equity incentive plan. and (v) how to properly fire employees. Lawyer time required: 3 to 6 hours.

Stock Options 58

Stock Options Vesting Subscription Agreement Founder Vesting 58

Tim Keane

JANUARY 12, 2010

Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values.   For individual angels and others investing their own money, this may be more fluid than for someone with responsibility for a managed fund.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Berkonomics

NOVEMBER 23, 2023

Some rules about stock options and phantom stock: [Email readers, continue here…] The real insight here is that stock options or phantom stock are the tools of early-stage businesses used to attract great talent when there is not enough cash to pay market rates. How about multiple classes of stock?

Equity 62

Equity Stock Options Vesting Early Stage 62

thinkspace.com

SEPTEMBER 7, 2012

How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? Equity for Employees. Manager or Junior Engineer 0.2 - 0.33.

Equity 62

Equity Employee Founder CTO Hire 62

Seeing Both Sides

MAY 26, 2010

Although I know this risks being an unpopular post with entrepreneurs, I confess that I no longer get why we have four year vesting schedules for stock option grants at start-ups. Vesting is known as the time period during which you unconditionally own the stock options that are issued to you by your company.

Vesting 31

Vesting Stock Options Stock Venture Capital 31

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. A cap table will help you in the strategic management of business decisions. Outline your plans for future employee stock option pools. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

infochachkie.com

SEPTEMBER 24, 2011

Beware The Consultant John Greathouse – Posted in: Cash Flow Management , Launching Venture , Strategic Planning. Unlike employee training costs, which can typically be spread over years of service, the relative return from training a consultant is modest and pricey. Thanks for visiting!

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Berkonomics

SEPTEMBER 28, 2017

And then there are options: [Email readers, continue here…] Stock options or phantom stock are the tools of early stage businesses used to attract great talent when there is not enough cash to pay market rates. Each grant to new or existing employees must be approved by the board before issue.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? This answer.

Equity 40

Equity Employee Founder Cofounder 40

www.paulgraham.com

APRIL 28, 2010

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. The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. vesting would in that situation force founders to toe the line.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

ithacaVC

NOVEMBER 1, 2011

I am a big fan of change of control option vesting acceleration, particularly for the executive team. Normally employee options vest over 4 years, with 25% vesting after year 1 and then the balance pro rata (monthly or quarterly) over the remaining 3 years. Going public does NOT equal a change of control.

Vesting 60

Vesting Pre-Money Valuation Liquidation Preference Stock Options 60