SoCal CTO

SEPTEMBER 27, 2011

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. I'll get to service providers in a later post. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. n = (1.2 - 1)/1.2 =.167.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Hunter Walker

MAY 7, 2014

Whether it’s adding capacity to an existing function (#MawrEngineers) or bringing new talents onboard (“we intend to make our first marketing hire”), glossing over these bullet points towards the back of the pitch deck would be a mistake. I’m interested in not just what these people will be doing but how and when they’ll be hired.

Hiring 108

Hiring Option Pool Early Stage Term Sheet 108

Austin Startup

JANUARY 25, 2020

This was my time at a Wall Street firm that had hired me after I applied for their Junior Stockbroker position, a little while after I graduated from college. The startup was launching its product there, and as part of the promotion plan, we were to go into bars in the evenings and sign people up to use their service.

Delaware 62

Delaware SEC New York City New York 62

www.inc.com

SEPTEMBER 24, 2011

Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We These days, start-up entrepreneurs like Parker do sometimes use equity not only to motivate key employees but also to help pay for consulting and other services.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Early Growth Financial Services

JUNE 26, 2014

Valuation — Know what these terms mean: Fully-diluted — This includes all issued stock and anything that could be converted into common stock (typically after an acquisition or IPO), such as your stock option pool. Pre-money valuation — The value of the company prior to investment, calculated on a fully-diluted basis.

Pre-Money Valuation 51

Pre-Money Valuation Option Pool Dilution Common Stock 51

The Next Web

JUNE 15, 2012

From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. For these reasons, experts often counsel startups to only give stock to contractors, vendors, and service providers as a last resort.

Equity 116

Equity Stock Options Vesting Stock 116

David Teten

DECEMBER 3, 2019

I’ve also experimented with using services which are marketplaces between LPs and GPs: CEPRES , DiligenceVault , FundVeil , Harvest Exchange , and Palico. Later stage investors are using for sourcing private company marketplace services focused on more established companies, listed below under “Step 11: Exit”. 6) Due diligence.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78