Startup Professionals Musings

APRIL 8, 2015

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. Every startup should have at least a couple of outside advisors who are not major investors or family members, anxious to talk to new investors and key new hires.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

SEPTEMBER 9, 2015

Even non-profits need revenue to cover their costs, and continue to provide services. Find a strategic partner to accelerate growth. Trying to save money by recruiting family members, or hiring only interns, is a bad risk. Opportunity and revenue projections based on deep market and customer analysis are a smarter risk.

Forecast 120

Forecast Startup Stock Options Technical Review 120

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth. Two-f **g-billion!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

The Startup Magazine

JUNE 1, 2023

We’re hitting record revenue months, weeks, and margins. Don’t be afraid to pivot The collapse of SVB spurred us to do a deep evaluation of how we’re generating revenue and value for customers. So instead of throwing dollars and time at a revamp, we’re doubling down on what we already know is the best value and revenue generator.

Early Stage 110

Early Stage Los Angeles Silicon Valley Cofounder 110

YoungUpstarts

FEBRUARY 11, 2020

Whenever I start a new job or join a board, I spend time understanding what is really important to the company, especially around strategy, revenue and capital allocation. When I became a managing partner, aside from directing our strategy on where to invest, I also helped recruit board positions and management teams.

Switzerland 264

Switzerland Private Equity Stock Options Equity 264

Scalable Startup

AUGUST 9, 2018

They need the money to rent offices, hire staff, and establish their initial presence (website, incorporation, marketing). Option Two: Once your product or service is up and running and gaining traction. Option Three: Or don’t raise funding. If you’re bootstrapping, you don’t need to worry about either of these options.

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. So junior analysis of your company is also often where initial due diligence goes to die unless you can be sure that the investment partner is also willing to engage.

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Eric Friedman

JUNE 11, 2019

Whether a fundraising event, hiring, or sales/partnership opportunity- these can be especially useful to make all parties move faster. Partnership Forcing Functions can be tricky because they typically don’t involve revenue, which drives most business decisions, but there are other reasons to do the deal.

Term Sheet 68

Term Sheet Stock Options Early Stage Agile 68

Berkonomics

APRIL 4, 2024

Then along comes either money or contracts from strategic or financial investors or partners. Compensation’s charter is to approve stock option grants for any employee, no matter how small the grant, and all salary and benefits for at least the CEO if not the next level down, to avoid conflict of interest with the CEO.

Covenant 48

Covenant Software Review Stock Options Vesting 48

infochachkie.com

SEPTEMBER 24, 2011

For instance, if a consultant proposes to help you with public relations, pay them a commission equivalent to the greater of a flat fee per story placed or a percentage of revenue generated from the PR coverage. At the early stages of your company’s life, you cannot rely on disinterested, hired guns to define your company’s key tasks.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Both Sides of the Table

APRIL 27, 2010

My original post was directed at hiring managers. It said that I didn’t believe it was a good idea to hire job hoppers. My view still stands – for many hiring managers a large factor in looking through resumes of somebody who is 30+ and has never worked somewhere for more than 18 months will be the job hopping element.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Gust

NOVEMBER 4, 2011

This discussion expands on my Quora answer to a specific question: “ Why were the stock options of MySpace employees worthless even though the company was sold to News Corporation for hundreds of millions? ” The complete story includes a startup-within-a-startup, investments and exits by two VC firms, and some genuine corporate drama.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Ben's Blog

APRIL 28, 2010

When my partner Marc wrote his post describing our firm , the most controversial component of our investment strategy was our preference for founding CEOs. Salmon points out that “not a single one of the 12 [candidates] is a CEO who was hired to run a company by its board of directors.”. If you do, hire him!

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Berkonomics

SEPTEMBER 13, 2010

Then along comes either money or contracts from strategic or financial investors or partners. Compensation’s charter is to approve stock option grants for any employee, no matter how small the grant, and all salary and benefits for at least the CEO if not the next level down, to avoid conflict of interest with the CEO.

Covenant 59

Covenant Software Review Stock Options Vesting 59

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

So hiring more people and being around more people and getting more things done is not actually one of the reasons. Why not get a partner? How do you split revenue? You may call it employee number one with a really low salary and really generous stock options and as the company grows, you’ll fix their salary.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Not all the people who work at VC firms are partners.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

ReadWriteStart

JUNE 15, 2012

To learn more about how your startup can find, hire and keep the top talent and quality workers it needs to succeed, download this free ReadWriteWeb Report: The Talent Wars: Today’s Toughest Startup Challenge.). Share the Partner Feel With Equity. After all, your new partner will be a key decision maker toward that pivot.

Developer 130

Developer Equity Ruby Cofounder 130

techcrunch.com

OCTOBER 23, 2010

Inevitably, the excuses begin: I need to hire people to build the product. In Meebo’s case, for example, I was lucky enough to partner up with Elaine and Sandy. No looking for partnerships (who’s going to partner with you anyway?). Partner up? Like I said, forget everything else and just get your product out the door.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

Ben's Blog

MARCH 17, 2011

In addition, customers and business partners can also make use of this short hand to figure out how to best work with your company. Should your company make Vice President the top title or should you have Chief Marketing Officers, Chief Revenue Officers, Chief People Officer’s, and Chief Snack Officers? Yes, definitely.

Employee 78

Employee Stock Options Engineer Management 78

Seeing Both Sides

JANUARY 13, 2015

My boss and mentor from Open Market, Gary Eichhorn , made the entire management team read it in the 1990s to hammer home its important lessons as we stumbled through the chasm on our way to scaling from zero to nearly $100 million in revenue in a few years. The first version of the go to market team is hired (i.e., 10-50 million.

Mezzanine 20

Mezzanine IPO Finance Business Model 20

Ben's Blog

OCTOBER 8, 2010

Disclaimer: my business partner, Marc Andreessen, is on the board of directors of Hewlett-Packard. In addition, HP competitor Larry Ellison lambasted the board and even went so far as to hire Mark Hurd to be President of Oracle. If revenues aren’t high enough, you’ll be forced to lay-off hard working, valued employees.

New York 78

New York Stock Options Stock Employee 78