techcrunch.com

JUNE 22, 2012

Free Startup Docs: How Much Equity Should Advisors Get? Entrepreneurs want to compensate their mentors and advisors for the time they dedicate to helping their businesses grow, but they have no idea how much equity to offer. In particular, Ressi said, the team is interested in reactions to the above equity matrix. Headphones.

Equity 94

Equity San Francisco Startup Silicon Valley 94

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.” 7% Product Manager,2 -.3% It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.”

Equity 237

Equity Stock Options Advisory Board Stock 237

Startup Professionals Musings

JANUARY 15, 2021

This is the purpose of a vesting schedule, which issues allocated stock over time. Typically, vesting in startups occurs monthly over four years, starting with the first 25 percent of shares vesting only after an owner has remained active for at least 12 months (one year cliff ). Key founder vesting should have no cliff.

Vesting 298

Vesting Dilution Stock Founder Vesting 298

Austin Startup

DECEMBER 9, 2019

Another red flag is when a SIC member asks for equity in your company upfront, without any performance vesting standards. For example, “give me 5% equity in your company and I’ll give you advice and allow you to use my face on your slide deck to raise money.” This is a bad deal for you, if you take it.

Vesting 72

Vesting Early Stage Seed Capital Equity 72

www.avc.com

SEPTEMBER 22, 2011

Employee Equity: How Much? The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. And the amount of equity you need to grant to accomplish these hires is also an art and most certainly not a science.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Altgate

JUNE 25, 2012

—————– Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Choe opted to forgo a cash payment “in the thousands” for the equity equivalent at the time. Dead equity has always been a significant issue for startups.

Equity 44

Equity Vesting Cap Table Technical Review 44

The Startup Magazine

FEBRUARY 21, 2024

The increasing inflow of capital into private credit necessitates rigorous underwriting standards and disciplined risk management. This hands-on approach is indicative of a vested interest in the success of the business, far removed from the notion of lending to “bad” companies.

Technical Review 133

Technical Review Due Diligence Bankruptcy Intellectual Property 133

Startup Professionals Musings

JULY 1, 2022

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” 7% Product Manager,2 -.3% It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.”

Stock Options 343

Stock Options Advisory Board Stock Startup 343

YoungUpstarts

AUGUST 19, 2019

For equity trading, the general rule of thumb is to start an investment portfolio of at least $1000. While there are other alternatives to start investing like robo-advisors, users typically underperform slightly in the market due to management and ETF fees. Low $$ Barrier to Entry.

Investment Bankers 127

Investment Bankers Technical Review Stock Vesting 127

www.inc.com

SEPTEMBER 24, 2011

Leadership & Managing | Tuesdays. LEADERSHIP & MANAGING. Managing Creativity. Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. But sharing equity can have pitfalls, too. Leadership.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Gust

APRIL 9, 2014

Equity dilution works when the same pie is divided among more people. 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.). original post can be found on Quora @ [link] *.

Dilution 150

Dilution Equity Vesting Stock Options 150

www.mattbartus.com

SEPTEMBER 24, 2011

Equity for Consultants – Keep it Simple! posted Feb 3 in Equity , People issues. We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” The most you lose is 1 or 2 months of vesting on the stock. Blog blog archive. Quora Answers.

Equity 40

Equity Vesting Silicon Valley Intellectual Property 40

Startup Professionals Musings

MAY 8, 2022

You have very little money, and you don’t want to give away your equity. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. Later you need specialists and managers. Every founding member wants to be compensated richly for the risk and the unknown.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

NZ Entrepreneur

SEPTEMBER 29, 2021

So managing risk in a startup is less about compliance, it’s more about being as brave and ambitious as you can without breaking things. This may mean straddling the line between governance and management when necessary. This equity will vest over 2-3 years. And they need to do this at pace.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

The Next Web

AUGUST 26, 2013

Today, in steps 10-12 I want to discuss with you raising your first round of money, hiring to develop and maintain your company culture, as well as defining your role in the management of your startup. I’ve seen a few businesses where the first investors took huge pieces of equity for very little money. Prepare to become a manager.

Management 120

Management Cofounder Startup Bootstrapping 120

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. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

www.instigatorblog.com

OCTOBER 23, 2010

Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. 1% but they’re not going to be overwhelmed by it, or insanely incentivized by that equity alone. I do believe that early employees should trade salary for equity.

Equity 41

Equity Employee Startup Vesting 41

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. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

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.” 7% Product Manager,2 -.3% It never hurts to ask in a job interview what stock options are available, and don’t accept an offer which promises to “work out the equity terms later.”

Equity 234

Equity Advisory Board Stock Options Stock 234

David Teten

JULY 10, 2019

pre-launch, BIG equity, big peeps involved–ANY TIPS?? You must have a strong product management pedigree. See Ready to Join a New Management Team? We agree on an equity split, vesting, and initial compensation structure. And how do you split the equity? Do you want to make America functional again ?

America 60

America Technical Review Advisory Board Due Diligence 60

David Teten

MAY 7, 2019

You must have a strong product management pedigree. See Ready to Join a New Management Team? We agree on an equity split, vesting, and initial compensation structure. And how do you split the equity? The CEO is ideally a successful serial entrepreneur who has taken a startup all the way to an exit.

America 60

America Technical Review Advisory Board Due Diligence 60

Steve Blank

MAY 19, 2015

retaining their existing hires who were working for intern-like salaries with little equity. When we did, I asked him about his head of HR, and heard all about what great medical and insurance benefits, stock vesting, automated expense account forms, movie night, company picnics, etc., Upgrade their salaries and equity ASAP.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

Startup Professionals Musings

JANUARY 29, 2018

Now is the time to talk to a qualified attorney, and get some discipline in place for the following strategies: Manage founder’s shares like gold with partners. Even though initial stock has no market value today, it is extremely valuable in dividing equity ownership between co-founders, investors, and early partners.

Stock 129

Stock Vesting Preferred Stock Cofounder 129

NZ Entrepreneur

MAY 27, 2019

If you’re scared about giving up on control or equity, then read on. One person might be good at systems, the other might be happier managing customers. There are several things you’ll need to put in place to protect yourself (eg vesting schedules, shareholders agreements) and give any partnership the best chance of success.

Technical Cofounder 64

Technical Cofounder Cofounder Technical Review Software Review 64

David Teten

SEPTEMBER 2, 2017

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. Also see Preqin’s Key Due Diligence Considerations for Private Equity Investors. . VC and private equity are very illiquid on both the investing and the personnel side. So assessing fit is critical.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

Startup Professionals Musings

AUGUST 10, 2019

You have very little money, and you don’t want to give away your equity. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. Later you need specialists and managers. Every founding member wants to be compensated richly for the risk and the unknown.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Berkonomics

JANUARY 25, 2024

Board members or lead investors as coaches If you take smart money from a good angel or venture organization, the lead investor usually becomes your board member and has a vested interest in your success. And some will willingly work for stock options, an amount to be negotiated based upon time spent and stage of corporate development.

SBA 62

SBA Warrant Stock Options Vesting 62

Hunter Walker

FEBRUARY 20, 2021

You don’t even need to do anything and we’ll give you equity. It doesn’t have to be a huge commitment on their part (or significant equity), but just start giving them some tie to your startup and some incentive to maintain the relationship. Advisors can be so much more than social proof and tactical advice. Let me know!

Advisory Board 150

Advisory Board Equity Vesting Startup 150

Startup Professionals Musings

MAY 18, 2015

This is the purpose of a vesting schedule, which issues allocated stock over time. Typically, vesting in startups occurs monthly over four years, starting with the first 25 percent of shares vesting only after an owner has remained active for at least 12 months (one year cliff ). Key founder vesting should have no cliff.

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Steve Blank

JULY 19, 2010

As a founder I fought with VC’s over vesting as they brought in a new CEO and walked me out the door. As a board member I negotiated with founding CEO’s over vesting when I thought it was their time to go. I’ll offer that both entrepreneurs and VC’s have the wrong model for founding CEO equity compensation. The New Deal.

Vesting 251

Vesting Liquidity Event Venture Capital Founder Vesting 251

Growthink Blog

MARCH 19, 2012

Letting small companies sell equity stakes online would be a huge boost to those firms—like angel investing on steroids. Broadening the Base Currently, equity-based crowd funding falls under strict Securities and Exchange Commission rules governing angel investing. That hinders broad-based online fund raising in a couple of ways.

Equity 88

Equity Securities and Exchange Commission Private Equity SEC 88

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 4 Vesting. 7 Salary vs Equity. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. From Payne.org Wiki. 2 Stock Classes: Common and Preferred.

Equity 56

Equity Employee Vesting Preferred Stock 56

Startup Professionals Musings

DECEMBER 14, 2014

You have very little money, and you don’t want to give away your equity. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. Later you need specialists and managers. Every founding member wants to be compensated richly for the risk and the unknown.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

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.” 7% Product Manager,2 -.3% It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.”

Stock 140

Stock Stock Options Advisory Board Startup 140

YoungUpstarts

SEPTEMBER 13, 2017

This vested owner operator mentality gives the brand a dedication and commitment you only get from someone who has their own skin in the game. Franchisees, unlike W-2’d managers, watch Yelp reviews like a hawk and respond diligently to keep their customer base coming back for more.

Customer 109

Customer Intellectual Property Vesting Business Model 109

blog.aparttimecto.com

OCTOBER 23, 2010

Flexibility - You won’t need to commit to something, either cash, equity or involving other people, upfront. Cons: Money - Unless you have cash to pay, the pool of developers willing to work for equity is small. Thus, they typically take a vested interested in ensuring whatever they build will be able to evolve with the company.

CTO Hire 40

CTO Hire Fractional CTO Equity Vesting 40

Feld Thoughts

JANUARY 17, 2013

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. I embrace this – my goal is to help these entrepreneurs and management teams win.

Stock Options 134

Stock Options Stock Vesting Retention 134