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Techstars Equity Back Guarantee

Feld Thoughts

Today Techstars announced an “ equity back guarantee ” for any company that goes through the Techstars program starting in 2015.

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Co-founder Equity Split: A New Framework to Objectively Divide Startup Ownership and Get Back to Building a Business

Gust

We’ve just released our free Co-founder Equity Split tool. It’ll give you a fair and objective recommendation about how to divide your startup’s ownership, so you and your co-founders will have a sensible, real starting point for this notoriously hard, crucially important conversation. Read more >.

How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Below, Lee Hower offers advice for approaching these equity discussions objectively and properly. Capital Investment & Sweat Equity.

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Issues with Equity Misalignment

Ask The VC

Q: In our startup we have 4 founders, two of whom are not full time.  We’ve all put in a good sum of cash thus far. The two founders with the least equity happen to be the two tech founders. In your case, you feel like the 32% founder doesn’t do any work. Equity equity founders

Founder Dilution

A VC : Venture Capital and Technology

I saw a blog post this weekend that looked at the IPO filings of 79 tech companies and calculated the ownerships of the founders and the VCs at IPO. Employee Equity: Dilution. In both posts, I lay out how the equity gets shared with employees and investors as the company grows and scales. entrepreneurship VC & Technology

Does Being The First Full-Time Paid Employee Affect That Founder’s Equity In The Company?

Ask The VC

Question: I am one of three founders of a company.  Up until now we have been bootstrapping the company from our own funds and working part time on the company while having full time jobs. The first is the founders that are not yet paid employees would think that the other is  getting paid so FTE’s equity should decrease.

Are You Getting Your Fair Share Of Startup Equity?

Startup Professionals Musings

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two.

How does equity dilution work for startups?

Gust

Equity dilution works when the same pie is divided among more people. Uncategorized company equity dilution founder investors startup

Founder Liquidity and Growth Equity

Non-Linear Growth

… Read more › The post Founder Liquidity and Growth Equity appeared first on Non-Linear.

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. million.

Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the foundersequity and addressing the case where one of the founders provides the initial seed capital for the business.

Should You Offer Equity Compensation to Employees?

Up and Running

Of course, not every equity compensation story is a David Choe Story. In this article, I’m going to examine: What equity compensation is.

CTO Salary and Equity Trends 2009-2011

SoCal CTO

Or they are looking at Hiring a CTO and want to see what salary and equity ranges look like. Powered by Tableau I'm showing snapshots below.

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How To Allocate Founder and Employee Equity

A VC : Venture Capital and Technology

Before factoring in dilution from investors, the founders should end up with about 50% of the company, total. It never makes sense to give anyone equity without vesting. Nobody who is not working full time counts as a founder. Ideas are pretty much worthless. And I second with emphasis the focus on fairness.

An Advisor Equity and Advisor Pool Breakdown

Eric Friedman

As a potential advisor looking to get involved with the company; MORE EQUITY! Eric Friedman Startups Advisors Equity Startup Advisors

Startup CTO Salary and Equity Data

SoCal CTO

The data is a bit tough to deal with via a post, so I've shared it two ways: You can find a PDF with some analysis at: CTO Equity Compensation PDF.

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How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

How to Divide Equity to Startup Founders, Advisors, and Employees. Equity for Founders. Equity for Employees. About.

Equity basics: vesting, cliffs, acceleration, and exits

The Startup Toolkit

false As a cheatsheet, the “normal” equity structure is: Founder terms: 4 year vesting, 1 year cliff, for everyone, including you.

CTO Equity and Compensation at Venture Backed Companies

SoCal CTO

The data is a bit tough to deal with via a post, so I've shared it two ways: You can find a PDF with some analysis at: CTO Equity Compensation PDF.

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Can A Hoodie Increase Brand Equity?

crowdSPRING Blog

From a brand equity perspective, the purple hoodie was a unique way to acquire 2,000 die-hard brand advocates. Image credit: Twitch. Let them.

Equity Crowdfunding: Is it Right for Your Business?

Early Growth Financial Services

In comparison, the crowdfunding market totals $.5B 5B (and has a $24% success rate at raising funds).

What Founders Need to Know About Startup Equity

Early Growth Financial Services

Equity is a startup’s lifeblood. One thing to remember: your equity is precious: don’t be lavish in giving it away. There’s no single best … Continue reading → Equity / Debt / Venture Funding On the other hand, being too stingy will make it hard to attract talent, advisors, and investors. What do you need it for?

Rethinking Founder Vesting

K9 Ventures

One of these norms is how founder vesting and employee vesting works. I won’t get into employee vesting today as that has much more to consider than I have time to cover in this short post today. Here is a good summary post from Cooley GO on Founder Vesting. The post Rethinking Founder Vesting appeared first on K9 Ventures.

What Founders Need to Know About Equity Grants

Early Growth Financial Services

Equity plays a key role in aligning incentives, clarifying expectations, and deliverables between companies and employees.

Founders Circle

A VC : Venture Capital and Technology

Last week my friend Chris Albinson formed an interesting new firm called Founders Circle Capital. In a nutshell, Founders Circle provides liquidity for the founders and employees of a “breakaway growth companies” so they don’t need to sell or take the company public prematurely. VC & Technology

What is an effective “pre-incorporation-agreement” between possible founders of a startup?

Gust

Then sit down with your co-founders and divvy up the equity based on the contributions you all believe each of you will make…providing for reverse vesting, a large option pool, and a clear decision-making structure. Pivotal Moments equity Founder equity founder relationships founders incorporation agreement startups

How Much Founder Stock Should You Offer Co-Founders?

Startup Professionals Musings

Two heads are better than one, so the first task in many startups is finding a co-founder or two. Now comes the reality check.

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Equity-Only CTO and Equity-Only Developers

SoCal CTO

I had a recent email dialog with the founder of a company looking for a CTO for their startup. And I tried to evaluate the idea and figure out: What did the founder really need here? Was it a Startup Founder Developer Gap ? And do I fit as a Part-Time CTO , Technology Advisor , CTO Founder , Acting CTO ? How To Get Ther

Mathematical vs. Economic Dilution of Startup Equity: Thinner Slices of an Extra-Large Pizza

Gust

Being fluent in these concepts helps in many settings, such as negotiating terms with potential investors, co-founders and key employees.

Visualization of Startup CTO Equity and Salary Data

SoCal CTO

You can click on the filters such as Founder Status (#3) and Job Title (#4) to filter to that particular data.

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Texas Proposes Equity-based Crowdfunding Rules

SiliconHills

By LAURA LOREK Founder of Silicon Hills News In Austin, one of the big issues facing startups, particularly in the technology industry, is lack of access to capital. Austin San Antonio crowdfunding Greater Austin Chamber of Commerce Texas Securities Board

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Financing your business: Debt vs Equity

StartupCFO

VentureBeat wrote a post recently on debt versus equity which one is right for your business. Equity. Equity is pretty straightforward.

The Perils of Founder Fighting

Both Sides of the Table

Nowhere is the politics more difficult than with co-founders, which is why for years I’ve spoken publicly about “ the co-founder mythology.”

10 Partner Qualities to Test Before Sharing Equity

Startup Professionals Musings

A while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.” Level of integrity.

Book: The Founder’s Dilemmas

Feld Thoughts

The Founder’s Dilemmas by Noam Wasserman is another book that belongs on every entrepreneur’s bookshelf. Noam systematically marches through all of the major dilemmas I could think of for founders: career, solo-vs-team, relationship, role, reward, hiring, investor, failure-vs-success, founder-CEO succession, and wealth-vs-control.

4 Things Every Founder Should Know About Convertible Equity

Early Growth Financial Services

Lately I‘ve been getting more and more questions about convertible equity: “What is it?” In short, convertible equity is a form of financing that gives investors the right to preferred stock once a triggering event occurs. and “Should I use it?” So I figured now’s the right time to answer a few questions and fill in some blanks.

Startup compensation: flat salaries and equity/options work best

The Equity Kicker

We had some success with this system, most notably at Zeus Technology, which was a good exit for my old firm Draper Esprit, but these days I recommend flat salaries with upside coming from options or founder shares. With those caveats the best structures are flat salaries and a share of the equity. Otherwise life gets very difficult.

A first-time founder’s guide to term sheets: Equity investments, continued

The Next Web

If you haven’t read the first part on equity term sheets, I strongly recommend doing so before moving on. Entrepreneur Analysis and Opinion

Free Startup Docs: How Much Equity Should Advisors Get?

techcrunch.com

Free Startup Docs: How Much Equity Should Advisors Get? This is where a lot of founders get stuck. FOUNDER INSTITUTE. Startups.

What Is a SAFE? A Closer Look at The Simple Agreement for Future Equity

Early Growth Financial Services

Enter the SAFE, or Simple Agreement for Future Equity. SAFEs usually appear around the seed stage of funding, as it gives founders the chance to raise funding without having to begin the process of setting a valuation or issuing convertible notes. Convertible debt is a staple in startup funding.