article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

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. Which means n = (i - 1)/i.

article thumbnail

5 Keys To Sustaining A Positive Attitude In Your Team

Startup Professionals Musings

In my experience as an employee, up to an executive, in large companies as well as small, I’ve found that people who are consistently negative and complain are a big constraint on productivity, as well as the most difficult management problem that most business leaders face. They may really want to change.

Employee 371
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Hiring Employee #1

A Smart Bear: Startups and Marketing for Geeks

stock, performance bonuses) are preferred to guaranteed earnings (e.g. You’re not just hiring any old programmer or salesman, you’re hiring employee #1. Right, so it doesn’t matter with your first few employees either. In a small startup there’s no layer separating employees from customers.

Hiring 282
article thumbnail

8 Questions You Should Ask Before You Join A Startup

Startup Professionals Musings

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. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners.

article thumbnail

Stock options or more cash?

Berkonomics

What if employee candidates ask for the moon? and stock options as a perk? Email readers, continue here…] One of the items on Cohen’s list of twenty-five was stock options. The post Stock options or more cash? That of course jumps to the top of the list for young, fast-growing technology companies.

article thumbnail

8 Red Flags To Evaluate Before Pledging To A Startup

Startup Professionals Musings

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. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners.

article thumbnail

How to split startup equity between startup founders when starting a new business

The Startup Magazine

Take the time to iron out the specifics so that you can prevent misunderstandings, compensate employees properly, and run your company in a manner that is pleasant for your staff. . As a result, you will have no dividend or voting rights until you convert your options to stock. The differences between shares and options.

Equity 142