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 are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. Same Value for Sweat Equity as Investment Dollars?

article thumbnail

5 Keys To A Viable Spending Rate And Cash Management

Startup Professionals Musings

Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Use social media for early marketing. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 258
Insiders

Sign Up for our Newsletter

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

article thumbnail

10 Keys To Surviving Startup Cash Flow Requirements

Startup Professionals Musings

Nevertheless, it’s an option that doesn’t cost you equity. The hottest new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity. Exchanging your services for services is possible with legal counsel, accountants, engineers, and even sales people.

article thumbnail

New Meetup on Building Tech Tools for Private Equity+VC Investors

David Teten

My colleague Sebastian Soler, software engineer at ff Venture Capital, is leading the launch of a new Meetup with me. Our meetup is focused on how to use technology to enhance investing in private markets, including VC, growth, buyout, and distressed. I asked him to write a guest post: Hi!

article thumbnail

10 Tips For A New Venture To Survive The Early Years

Startup Professionals Musings

The most effective new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity. The positives are that you give up no equity, and these apply to the early startup stages, but they do take time and much effort to win. Use crowd funding.

article thumbnail

5 Ways To Conserve Investor Cash And Ensure Survival

Startup Professionals Musings

Of course, their answer is that the second intends to get to market faster, but every engine has limits regardless the fuel applied. Use social media for early marketing. That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity.

Burn Rate 310
article thumbnail

Los Angeles CTO / VP Engineering Job Searches

SoCal CTO

As the organizer of the LA CTO Forum , I get lots of inquiries by job seekers and people looking for CTO / VP Engineering talent. That said, if you already have a relationship with a VC, letting them know you are on the market is a good idea. The chance that you fit a specific need is relatively small.