A Smart Bear: Startups and Marketing for Geeks

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How to think about cash vs. equity compensation

A Smart Bear: Startups and Marketing for Geeks

It’s among the most-asked questions on startup forums, and an issue we’re dealing with right now at WPEngine as we bring on new employees: How do you decide how much equity (shares) to give a new employee or partner? Hard to know, but an important question for a bootstrap startup to answer! What about $Y/mo?&#

Equity 276
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WP Engine passes $100M in revenue and secures $250M investment from Silver Lake

A Smart Bear: Startups and Marketing for Geeks

The Silicon Valley-oriented technology press outlets don’t cover us because we’re not in San Francisco, even though we’re more successful than most of the startups they cover. This week we closed $250M in financing from Silver Lake , the premier technology private equity firm.

Engineer 152
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Startup Fitness

A Smart Bear: Startups and Marketing for Geeks

I hesitate to take issue with Jason’s Sacrifice your health for your startup — particularly after his wife gave her up-close-and-personal. As founder of a run/bike app startup, I can write off my workouts. I have a ready excuse for squeezing in a little “sweat equity” — I need to get in shape to know my customers’ issues.

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Should I invest my savings in this startup?

A Smart Bear: Startups and Marketing for Geeks

This is part of an ongoing startup advice series where I answer (anonymized!) Employee-Investor writes: I’ve been invited to join as startup as employee #1. In short, your $95k investment buys you far more equity than your time does, whereas your time is much more valuable to you than your money.

Salary 229
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More money if you do, more money if you don’t

A Smart Bear: Startups and Marketing for Geeks

It’s not a ruse devised by greedy vulture capitalists vying for extra points of equity. You’re delusional if you think you can predict your startup’s finances 18 months out with precision! “Always raise more money than you think you need.” You do need more money than you think.

Revenue 270
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Why large companies acquire small companies

A Smart Bear: Startups and Marketing for Geeks

In terms of acquisition, they ask more specifically: “How can we trade balance sheet assets (cash, equity) in exchange for executing our strategy better?”. Startups shouldn’t act smug about this. Even for startups, it takes years for a new product to become good enough to demand many millions of dollars in revenue.).

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The rise of the “successful” unsustainable company

A Smart Bear: Startups and Marketing for Geeks

Witness, for example, this terrific Fast Company article on Bill Nguyen , serial entrepreneur who’s seventh startup “Color” famously raised $41m for a new mobile app before it even launched. After all, before the house of cards inevitably tumbles, private equity investors get a tidy return. And it is magic.

IPO 240