Startup Professionals Musings

MARCH 29, 2015

Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire? So people ask me “How many shares should I ask for or expect when I join a startup today?” Thus, options don’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

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Stock Options Stock Advisory Board Startup 120

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. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones.

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Founder Hockey Stick Cofounder Liquidity Event 325

Startup Professionals Musings

APRIL 10, 2016

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. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

APRIL 8, 2015

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. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

SEPTEMBER 25, 2019

Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire or better? So people ask me “How many shares should I ask for or expect when I join a startup today?” Thus, options don’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Equity 237

Equity Stock Options Advisory Board Stock 237

Up and Running

DECEMBER 1, 2015

If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Make sure you understand all of your options before making any decisions. When business owners decide to go down the route of equity compensation, there are two primary options to choose between.

Equity 60

Equity Employee Stock Options Vesting 60

Startup Professionals Musings

AUGUST 10, 2019

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. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Startup Professionals Musings

OCTOBER 21, 2017

Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire or better? So people ask me “How many shares should I ask for or expect when I join a startup today?” Thus, options don’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Stock 140

Stock Stock Options Advisory Board Startup 140

Hunter Walker

JUNE 7, 2022

I can’t tell you whether this is just a few months of rightsizing or a multiyear recession but I do anticipate there are going to be more cuts — and outright failed startups — before our industry outlook returns to half-full instead of half-empty. Very often at startups your title isn’t reflective of all of your roles, or is quite generic.

Stock Options 94

Stock Options Vesting Stock Valuation 94

Gust

APRIL 9, 2014

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.). Uncategorized company equity dilution founder investors startup' original post can be found on Quora @ [link] *.

Dilution 150

Dilution Equity Vesting Stock Options 150

Startup Professionals Musings

JULY 24, 2011

Wouldn’t you like to be one of the lucky people who joined Google and Microsoft when these were startups, and now be a multi-millionaire? So people ask me “How many shares should I ask for when I join a startup today?” By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.”

Equity 234

Equity Advisory Board Stock Options Stock 234

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. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The Founder succession dilemma.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Startup Professionals Musings

JUNE 20, 2010

Wouldn’t you like to be one of the lucky people who joined Google and Microsoft when these were startups, and now be a multi-millionaire? So people ask me “How many shares should I ask for when I join a startup today?” By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.”

Stock 144

Stock Stock Options Advisory Board Startup 144

Up and Running

OCTOBER 13, 2022

Employee retention, for both startups and established businesses, is more important than ever. An ESOP, or an employee stock ownership plan, is a type of compensation plan that allows employees to acquire and own stock in your company. Remember, an ESOP is not the best option for every business. Get a 409a valuation.

Vesting 88

Vesting Stock Valuation Stock Options 88

Startup Professionals Musings

DECEMBER 14, 2014

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. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The Founder succession dilemma.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

Startup Professionals Musings

AUGUST 19, 2017

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. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The founder succession dilemma.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

Both Sides of the Table

NOVEMBER 4, 2009

This is part of my Startup Advice series. If you’re thinking about joining as the director of marketing, product management manager, senior architect, international business development lead, etc. Stock vests for 4 years. Stock options are the icing on the cake. Let’s face it.

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Stock Options Stock Liquidation Preference Option Pool 418

www.inc.com

SEPTEMBER 24, 2011

Leadership & Managing | Tuesdays. Advisor. ); STARTUP. LEADERSHIP & MANAGING. Managing Creativity. I advise my clients that you offer stock only after youve searched your heart and soul and cant come up with a way to pay with anything else," says Thomas H. Finance | Tuesdays. Innovation | Fridays. Tools & Research.

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Fractional CTO Equity Iowa Technical Cofounder 40

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values. These include: ·       Vesting of Founder Stock.

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Term Sheet Valuation Dividend Liquidation Preference 68

Reid Hoffman

DECEMBER 10, 2020

And if the reference checks come back positively, then if I believe at startup is a good opportunity, I can lean in right away. To honor the Alliance it had made with those former employees, Airbnb waived the usual vesting cliff so that they could exercise their stock options, and provided generous severance packages.

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Hosting Hockey Stick IPO Silicon Valley 69

Gust

DECEMBER 8, 2011

In Part I , I gave a quick summary of the who, when and why of forming and documenting a new startup company. This week we’ll delve into what , exactly, is necessary or desirable to lay a solid legal foundation for a startup to build upon. Make escrow arrangements for restricted stock (i.e., Newco, Inc.”) Newco, Inc.”)

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Intellectual Property Non-disclosure Agreement Delaware Stock 139

ithacaVC

JUNE 20, 2011

Cost is the overriding issue for startups when it comes to properly engaging a lawyer. Lawyer time required (including vesting agreements for founders): 3 to 6 hours. My general retort on this point is this: expect to incur real lawyer costs and get over it. Lawyer time required: 1 to 3 hours.

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Stock Options Vesting Subscription Agreement Founder Vesting 58

Both Sides of the Table

APRIL 22, 2010

This is part of my startup advice series. It’s still important advice for startup founders and something that I’m passionate about. Yes, if you were a startup CEO I would probably cut you some slack. If they are Google, Facebook and then a startup – you’re fine. You’re a startup founder.

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Hiring Employee Vesting Silicon Valley 392

www.payne.org

SEPTEMBER 22, 2011

Startup Equity For Employees. 2 Stock Classes: Common and Preferred. 4 Vesting. 5 Stock vs Options. 6 Founders / Restricted Stock. Important disclaimer: Ive got experience negotiating stock compensation packages from both sides of the table. Stock Classes: Common and Preferred. 3 Dilution.

Equity 56

Equity Employee Vesting Preferred Stock 56

www.paulgraham.com

APRIL 28, 2010

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. 1 ] A startups life will be more complicated, legally, if any of theinvestors arent accredited.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

infochachkie.com

SEPTEMBER 24, 2011

Be The Beatles Not The Flock Of Seagulls John Greathouse’s Bio ConTraps Part 2 ConTrap Part 3 ConTrap part 4 Startup Children Pt 2 Startup Children Pt 5 Startup Children Pt 3 Startup Children Pt 4 Decision Making 101 Talks: Jason Nazar on how to Persuade. Hands-on startup advice for emerging entrepreneurs.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

thinkspace.com

SEPTEMBER 7, 2012

How to Divide Equity to Startup Founders, Advisors, and Employees. Manager or Junior Engineer 0.2 - 0.33. Are there principles that you live by that you’ve implemented in your startup that have worked really well? How long should people vest – four years? Marketing Intern. Office Space. Virtual Office.

Equity 62

Equity Employee Founder CTO Hire 62

Up and Running

SEPTEMBER 20, 2021

And as the company grows, it brings on new people and may decide to issue stock options to attract new staff and funding from investors. A cap table will help you in the strategic management of business decisions. The range of investments in a startup can vary from three to seven figures. Common shares.

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Cap Table Pre-Money Valuation Stock Options Option Pool 112

ithacaVC

NOVEMBER 1, 2011

I am a big fan of change of control option vesting acceleration, particularly for the executive team. Normally employee options vest over 4 years, with 25% vesting after year 1 and then the balance pro rata (monthly or quarterly) over the remaining 3 years. Going public does NOT equal a change of control.

Vesting 60

Vesting Pre-Money Valuation Liquidation Preference Stock Options 60

ithacaVC

OCTOBER 31, 2019

I was recently in a board meeting and the topic of change of control stock option vesting acceleration came up. Absent provisions in a stock option plan or stock option agreements issued under a plan, an employee’s unvested stock options will simply terminate on a change of control (this is the default plan rule).

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Stock Options Vesting Stock Equity 69

OnlyOnce

SEPTEMBER 13, 2013

Ideally that would be your manager, but if you’re not comfortable starting the conversation there, find someone else — your department head, someone in HR, me. Let someone who is in a position to do something about it know that you’re considering other options and why. So what’s the Return Path Way?

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Stock Options Vesting Retention Email 134

Ben's Blog

APRIL 28, 2010

The conventional wisdom says a startup CEO should make way for a professional CEO once the company has achieved product-market fit. joined as a General Manager of the Computing Tabulating Recording Company, but renamed the company International Business Machines and turned it into the IBM we recognize today. Thomas Watson, Sr.

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Technical Review Cofounder Technical Cofounder Software Review 78

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? Many startups these days are first-time entrepreneurs. is lowered.

Equity 40

Equity Employee Founder Cofounder 40

venturehacks.com

OCTOBER 21, 2010

Venture Hacks Good advice for startups. SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS The Option Pool Shuffle by Nivi on April 10th, 2007 “Follow the money card!&# – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you.

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Option Pool Pre-Money Valuation Dilution Warrant 68

Diego Basch

SEPTEMBER 25, 2012

In the words of Fred Wilson: VCs are professional money managers. It is known that for any portfolio of startups, the returns follow a power law. Typical first-time SV entrepreneurs are not millionaires, so let’s say you have 100k in the bank (maybe you’ve made some money from stock options).

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Silicon Valley Entrepreneur Stock Options Vesting 73