Startup Professionals Musings

MAY 14, 2023

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

OCTOBER 16, 2022

Supportive co-founder and executive positions. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold.

Advisory Board 368

Advisory Board Dividend Angel Investor Cofounder 368

Startup Professionals Musings

FEBRUARY 8, 2021

In fact, the cost may be minimal, if you do your networking and build a relationship with an experienced business executive or two in your domain who are willing to share and give back for a nominal retainer, perhaps one percent of your new startup equity. The cost of a co-founder is usually fifty percent of your equity.

Advisory Board 356

Advisory Board Bandwidth Cofounder Technical Review 356

Startup Professionals Musings

MAY 25, 2022

Business partners can be co-founders in a startup, multiple owners of an existing business, or a joint venture. You need to do the due diligence to make that decision before you sign away your equity. You need to do the due diligence to make that decision before you sign away your equity.

Technical Review 313

Technical Review Due Diligence Partner Cofounder 313

Startup Professionals Musings

MAY 8, 2022

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.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Startup Professionals Musings

MAY 22, 2020

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 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

Startup Professionals Musings

OCTOBER 6, 2023

The Founder needs to remember that meetings up to this point have been primarily off-site, with staged demos, and managed personally by the CEO or a small team. Startup equity investments imply a long-term business relationship, lasting an average of five years. My best advice is to stick to the middle ground.

Technical Review 296

Technical Review Due Diligence Term Sheet Bankruptcy 296

Startup Professionals Musings

FEBRUARY 18, 2023

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 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Startup Professionals Musings

AUGUST 19, 2020

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Startup Professionals Musings

FEBRUARY 9, 2020

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. A sales fanatic on the founder team helps to contain that risk. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. The industry veteran.

Technical Cofounder 308

Technical Cofounder Cofounder Advisory Board Stock Options 308

Startup Professionals Musings

NOVEMBER 26, 2022

Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt. It’s very common for founders who find venture capital funding, to soon find out that they are being replaced by a CEO who has “more experience.” You won’t be fired if you use your own money.

Cost 267

Cost Bootstrapping Advisory Board Startup 267

Startup Professionals Musings

JANUARY 18, 2020

Supportive co-founder and executive positions. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold.

Advisory Board 312

Advisory Board Startup Dividend Angel Investor 312

Startup Professionals Musings

JANUARY 24, 2021

The Founder needs to remember that meetings up to this point have been primarily off-site, with staged demos, and managed personally by the CEO or a small team. Startup equity investments imply a long-term business relationship, lasting an average of five years. My best advice is to stick to the middle ground.

Technical Review 379

Technical Review Due Diligence Term Sheet Bankruptcy 379

Startup Professionals Musings

SEPTEMBER 25, 2019

CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5% Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3%

Equity 237

Equity Stock Options Advisory Board Stock 237

Startup Professionals Musings

FEBRUARY 29, 2020

Most entrepreneurs never forget for a moment that having investors means owing money, even if they can legally argue that equity is not debt. It’s very common for founders who find venture capital funding, to soon find out that they are being replaced by a CEO who has “more experience.” You won’t be fired if you use your own money.

Bootstrapping 310

Bootstrapping Advisory Board Venture Capital Startup 310

Startup Professionals Musings

SEPTEMBER 29, 2018

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Startup Professionals Musings

FEBRUARY 21, 2012

The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. For example, a web-based startup should be able to operate for a year if they raise $500,000 from the founders or angels. Great strategy.

Burn Rate 232

Burn Rate Startup Salary Equity 232

Startup Professionals Musings

SEPTEMBER 27, 2023

Every entrepreneur needs to understand the following basics, to be addressed at company formation, as they engage a qualified attorney to draw up the paperwork: Allocate founder’s stock commensurate with commitment. Key founder vesting should have no cliff. Facilitate an upgrade of founder’s common to founder’s preferred.

Stock 240

Stock .Net Vesting Founder Vesting 240

Startup Professionals Musings

JUNE 20, 2016

Thus the top priority of every entrepreneur who wants funding should be to build and highlight their “dream team” of co-founders, executives and advisers, to attract the biggest and best investors. There is a common belief in the angel and venture capital community that you put your money on the best team, rather than the best idea.

Sweat Equity 152

Sweat Equity Entrepreneur Elevator Pitch Software Review 152

Startup Professionals Musings

DECEMBER 23, 2013

Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. General startup expenses are beyond your means.

Bootstrapping 252

Bootstrapping Sweat Equity Entrepreneur Technical Review 252

Startup Professionals Musings

OCTOBER 5, 2014

Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. This could equate to two technical founders (with a minimal salary), funding two developers for a year.

Burn Rate 262

Burn Rate Hockey Stick Entrepreneur Salary 262

Startup Professionals Musings

JANUARY 28, 2011

The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. For example, a web-based startup should be able to operate for a year if they raise $500,000 from the founders or angels. Great strategy.

Burn Rate 231

Burn Rate Startup Salary Equity 231

Startup Professionals Musings

APRIL 23, 2013

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. Most startup founders already do this, rather than take a salary, to improve their offering. startup control equity bootstrapping Rich Christiansen business'

Equity 241

Equity Bootstrapping Startup Merger 241

Startup Professionals Musings

FEBRUARY 18, 2018

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. A sales fanatic on the founder team helps to contain that risk. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. The industry veteran.

Technical Cofounder 144

Technical Cofounder Cofounder Advisory Board Startup 144

Startup Professionals Musings

MARCH 16, 2016

Ron Conway , of SV Angels, and Reid Hoffman , LinkedIn's founder, are names often mentioned in this category. Sweat equity. Startup founders typically invest some real dollars into their new startup as well as months or years of their time with no salary. Equity crowdfunding. Deep-dive meeting. Ramen-profitable.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

Startup Professionals Musings

SEPTEMBER 22, 2011

Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. General startup expenses are beyond your means.

Sweat Equity 255

Sweat Equity Technical Review Entrepreneur Bootstrapping 255

Startup Professionals Musings

OCTOBER 10, 2014

Loans are a safer option than equity. Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Some founders are too focused on quick repayment, and they compromise strategic decisions. Pay the money back, with thanks, as quickly as you can.

Founder 254

Founder Cram Down Angel Investor Equity 254

Startup Professionals Musings

JUNE 11, 2014

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. A sales fanatic on the founder team helps to contain that risk. The combination of technical insight, founder authority, and sales experience is a hard-to-beat advantage in a competitive market. The industry veteran.

Technical Cofounder 245

Technical Cofounder Cofounder Advisory Board Startup 245

Startup Professionals Musings

NOVEMBER 1, 2014

Supportive co-founder and executive positions. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold. Often the Boomer is more willing to work for equity, and easily convinced to step aside when revenues reach that next threshold.

Entrepreneur 266

Entrepreneur Advisory Board Dividend Angel Investor 266

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

Startup Professionals Musings

NOVEMBER 13, 2012

Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. General startup expenses are beyond your means.

Sweat Equity 239

Sweat Equity Technical Review Bootstrapping Equity 239

Startup Professionals Musings

JUNE 25, 2012

Yet, I find that startup founders often fixate on one or two sources, often to the detriment of their business. A startup incubator is a company, university, or other organization which provides resources for equity to nurture young companies, helping them to survive and grow during the startup period when they are most vulnerable.

Technical Review 257

Technical Review Bootstrapping Venture Capital Incubator 257

Startup Professionals Musings

NOVEMBER 21, 2016

They expect to hear about founders and team member’s prior experience in building a startup, and knowledge in the relevant solution domain. Even non-profits need money to scale, but their pitch should be to philanthropists, not equity investors. Many naïve startup founders believe that they can make good money with low margins.

Intellectual Property 120

Intellectual Property Valuation Technical Review Equity 120

Startup Professionals Musings

JUNE 12, 2015

Every investor in your startup, even friends and family, normally expects a share of your company (equity), which means your return for all your effort goes down quickly. This is at least double the time required for most equity investments, and may be a delay you can’t afford in keeping up with the market and your competitors.

SBIR 120

SBIR Equity Technical Review Early Stage 120

Startup Professionals Musings

AUGUST 23, 2021

Thus, in my role as mentor to young entrepreneurs, I always recommend that you first take a hard look at your own values and priorities, before jumping into any new startup, as the founder, or even as a side hustle. Should I start out alone, or assemble a team first? A business is never a solo operation.

Startup 399

Startup Exit Strategy Cofounder Equity 399

Startup Professionals Musings

JANUARY 14, 2022

In a moment of crisis, you may be tempted to take on the first person expressing interest as a co-founder. I’ll put in the money, if you put in the sweat equity.” I’m not suggesting that co-founders should be equal contributors on both sides, but the parameters for “equality” better be well understood and well documented.

Partner 351

Partner Cofounder Sweat Equity Startup 351

Startup Professionals Musings

SEPTEMBER 22, 2021

Many of his original investors still remember when Facebook founder Mark Zuckerberg first related his personal challenge to only eat meat that he killed himself, in an effort to learn sustainable farming and consume resources responsibly. Offer an attractive and viable investment equation. Display real commitment to a plan, with milestones.

Intellectual Property 352

Intellectual Property Equity Bootstrapping Valuation 352