Eric Friedman

NOVEMBER 18, 2022

An example here is Shaq taking 1% of Ring and doing major endorsement deals and marketing. An underutilized action by founders is canceling their vesting due to lack of interaction or help with your company. How does vesting equity with an advisor work? I typically recommend 3 year schedules; Quarterly vesting with no cliff.

Early Stage 103

Early Stage Equity Vesting Cap Table 103

Hunter Walker

FEBRUARY 20, 2024

What Happens When TikTok Is Your Marketing Department [David Segal/New York Times] – Was it organic? Founder Vesting [Jared Hecht/USV] – Jared joined USV earlier this year and it’ll be interesting to see how his writing changes as he adds ‘institutional VC’ to his founder and angel investor knowledge.

Founder Vesting 59

Founder Vesting Vesting Cap Table Founder 59

SoCal CTO

SEPTEMBER 27, 2011

In other words, the loss of compensation for the early employee as compared to market rate should be viewed as equivalent to the equity for that same dollar amount from an investor. Unlike the founders, the employees have to wait until their grants vest, working at a company no longer of their choosing for two years. Wait a second.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

The Startup Magazine

SEPTEMBER 11, 2023

It’s a subtle yet powerful form of marketing that can set you apart in a crowded marketplace. Cost-Effective Marketing Marketing can be expensive, especially for startups with tight budgets. For instance, managerial staff might wear branded blazers, while field workers might have branded high-visibility vests.

Technical Review 131

Technical Review Startup Vesting Employee 131

Startup Professionals Musings

JANUARY 15, 2021

Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. This is the purpose of a vesting schedule, which issues allocated stock over time. Key founder vesting should have no cliff.

Vesting 298

Vesting Dilution Stock Founder Vesting 298

Both Sides of the Table

AUGUST 17, 2009

One very important item from Chris’s original post that wasn’t picked up by Fred or Brad is founder vesting. Chris writes that early-stage deals should have: Founder vesting w/ acceleration on change of control. Without proper vesting you also place a risk on all other co-founders. I totally agree.

Founder Vesting 252

Founder Vesting Vesting Founder Term Sheet 252

VC Adventure

AUGUST 16, 2020

All good, but different philosophies (and different markets and market conditions) can lead to different initial option programs. But it will also change the nature of your workforce if you only hire employees that can work for well below market cash comp. I think this is both practical and fair.

Programming 149

Programming Vesting Equity Software Review 149

Duct Tape Marketing

SEPTEMBER 30, 2022

How Typeform Stands Out In A Crowded Market written by John Jantsch read more at Duct Tape Marketing. Marketing Podcast with Karrie Sanderson. In this episode of the Duct Tape Marketing Podcast , I interview Karrie Sanderson. Take The Marketing Assessment: Take the Assessment. Like this show? Duct Tape Transcript.

Marketing 75

Marketing Differentiation B2C PR 75

YoungUpstarts

AUGUST 19, 2019

The stock market has historically been a long-term source of wealth creation, but due to a widening wealth gap, has become largely inaccessible to young people. The majority of entrepreneurial-minded people have forgotten about the stock market as an alternative to their next side hustle. Actually Learn How to Invest Your Money.

Investment Bankers 147

Investment Bankers Technical Review Stock Vesting 147

Steve Blank

OCTOBER 24, 2017

Uber , Zenefits , Tanium , Lending Club CEOs of companies with billion dollar market caps have been in the news – and not in a good way. This era was a “buyer’s market” – there were more good companies looking to get funded than there were VCs. And while new markets were created (i.e. Board Control.

Founder 252

Founder Technical Review CTO Hire IPO 252

Up and Running

OCTOBER 28, 2022

Office space, equipment, software, and talent are the most obvious, but you’ll also need tax help, general counsel, and marketing (among other services) to get operations off the ground. This may include things like rent, inventory, marketing, utilities, employee salaries, and so on. Your own personal funds will get you only so far.

Cost 138

Cost Startup Early Stage Vesting 138

The Next Web

OCTOBER 7, 2013

It is typical for employees to vest their options over four years with a one year cliff, which means a new hire must stay on the company for at least one year to see any shares. After a year, shares will vest in monthly or quarterly splits until the full grant is vested. How do you feel about that number?

Engineer 129

Engineer Dilution Option Pool Vesting 129

Both Sides of the Table

AUGUST 17, 2009

Research your market. I know it’s obvious but I’m always surprised how many people just start building products without thinking enough about the market. DO NOT start with product, start with the market. Founder vesting. Yesterday I wrote a blog posting on founder vesting (see here ).

Founder Vesting 365

Founder Vesting Intellectual Property Stock Options IP 365

crowdSPRING Blog

APRIL 13, 2012

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! Good & useful post for entrepreneurs about founder stock vesting & things to consider – [link]. Less marketing douchebaggery. Did everybody see what just happened?

Social Media 95

Social Media Small Business Design Media 95

crowdSPRING Blog

JULY 1, 2011

These posts and videos are about logo design , web design , startups, entrepreneurship, small business, leadership, social media, marketing, and more! Interesting but punitive provision in Skype’s option plan allowing repurchase of even vested options at grant price – [link].

Social Media 92

Social Media Small Business Design Media 92

This is going to be BIG.

NOVEMBER 28, 2021

I would propose that early stage startups start thinking about doing something radically different—think about trying to become the absolute best place to work if you have a family as a means of getting an advantage in the hiring market. Plus, you can allow people to vest into the program.

Hiring 179

Hiring Early Stage Marketing Term Sheet 179

Startup Professionals Musings

APRIL 23, 2012

Expertise can be marketing, technical, financial, or sales. Even still, regardless of the initial equity split, you should seriously consider vesting your founders shares over at least two years. Building a product doesn’t get it distributed and sold. Pre-existing intellectual property.

Intellectual Property 252

Intellectual Property Equity Cofounder CTO Hire 252

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.” Plus you have to remember that these 200,000 shares could still be worth nothing in four years, depending on the “strike price” today, compared to the market price four years from now. 7% Product Manager,2 -.3%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

SoCal CTO

JANUARY 18, 2011

Is it market rate or some reduced rate that you’ve discussed at some point? What would the cash equivalent for your time at market rates be for the amount of time you’ve invested to date? But, you should probably start with understanding where they believe that prior verbal agreement stands. What are the specifics of the 2%?

CTO 167

CTO CTO Hire Equity Vesting 167

SoCal CTO

JANUARY 18, 2011

Is it market rate or some reduced rate that you’ve discussed at some point? What would the cash equivalent for your time at market rates be for the amount of time you’ve invested to date? But, you should probably start with understanding where they believe that prior verbal agreement stands. What are the specifics of the 2%?

CTO 150

CTO CTO Hire Equity Vesting 150

Startup Professionals Musings

FEBRUARY 27, 2016

In addition to funding, the good news is that all of these provide aspiring entrepreneurs with an opportunity to perfect their marketing pitch, get some valuable target customer feedback and improve visibility to other funding sources. Keep all IP details close to the vest. Project your costs as diligently as your revenues.

Non-disclosure Agreement 120

Non-disclosure Agreement Intellectual Property Technical Review Vesting 120

Startup Professionals Musings

NOVEMBER 8, 2010

Expertise can be marketing, technical, financial, or sales. Even still, regardless of the initial equity split, you should seriously consider vesting your founders shares over at least two years. Building a product doesn’t get it distributed and sold. Pre-existing intellectual property.

Equity 228

Equity Intellectual Property Cofounder CTO Hire 228

Duct Tape Marketing

OCTOBER 8, 2023

How to Become a Fractional CMO written by John Jantsch read more at Duct Tape Marketing Ever heard of a fractional CMO ? Imagine wielding the power of a marketing wizard without having to afford their six-figure salary. You see, as marketers we often forget that less can be more; but not when it comes to knowledge and expertise!

Technical Review 74

Technical Review Retention Networking Leadership 74

Startup Professionals Musings

JANUARY 22, 2013

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”). Vesting with no cliff.

Vesting 245

Vesting Common Stock Stock Founder Vesting 245

Berkonomics

NOVEMBER 23, 2023

Some rules about stock options and phantom stock: [Email readers, continue here…] The real insight here is that stock options or phantom stock are the tools of early-stage businesses used to attract great talent when there is not enough cash to pay market rates. In other words, you cannot create bargain options at below “market rates.”

Equity 62

Equity Stock Options Vesting Early Stage 62

NZ Entrepreneur

SEPTEMBER 29, 2021

With the pandemic, climate crisis, global economic shifts and rapidly changing consumer markets, it is clear that many businesses of today will no longer be relevant tomorrow. Addressing real world problems, they thrive in uncertainty, generating new jobs and new revenue streams in new markets. This equity will vest over 2-3 years.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

Startup Professionals Musings

MARCH 23, 2014

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”). Vesting with no cliff.

Stock 256

Stock Vesting Common Stock Founder Vesting 256

Startup Professionals Musings

MAY 8, 2022

The right time to jump is a function of favorable career, personal, and market circumstances. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. If living on Raman noodles while you make the world a better place is fine, skip the investors and growth race.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Up and Running

DECEMBER 1, 2015

Stock options are issued to employees usually through an Employee Stock Option Plan (ESOP) and include what is called a “vesting period.” The vesting period, often three or four years, frees up a percentage of the options for the employee to purchase the longer they stay at the company. Restricted stock: . If you don’t need to

Equity 60

Equity Employee Stock Options Vesting 60

Both Sides of the Table

JUNE 18, 2015

And even this can’t stop their employees from fleeing after two years of vesting to move on to the next hot startup. I often tell people that in some ways it’s easier to build great companies in down markets. One needs to be in during bull markets and bear markets. For investors life is no different.

Software Review 150

Software Review Turkey Portfolio Syndicate 150

Startup Professionals Musings

JANUARY 29, 2018

Even though initial stock has no market value today, it is extremely valuable in dividing equity ownership between co-founders, investors, and early partners. Always specify a vesting period for new partners. Buying back stock on the open market may cost a huge premium. Manage dilution with proper use of new investment terms.

Stock 129

Stock Vesting Preferred Stock Cofounder 129

Both Sides of the Table

FEBRUARY 14, 2010

A few months ago we saw a CEO present who had personally made hundreds of millions of dollars in a financial services business and had a plan to capitalize on the current market conditions. Perhaps VC isn’t the vest route for this individual. He is well respected (but not liked) in his industry and in his company.

Technical Review 284

Technical Review Due Diligence Entrepreneur Early Stage 284

Duct Tape Marketing

FEBRUARY 18, 2020

The Role of Sales Materials in a Digital World written by John Jantsch read more at Duct Tape Marketing. With these digital marketing channels doing so much of the heavy lifting in representing your brand, do you really still need sales materials? Personalization is a must in today’s sales and marketing world.

Sales 81

Sales Vesting Technical Review Channel 81

Both Sides of the Table

JULY 27, 2013

My internal compass says that “country-club” entrepreneurs struggle to make as big of an impact because it’s really hard to totally change a system that you’re part of and have a vested interest in. It’s hard to be a rebel when upsetting the apple cart affects a bunch of people like you. Take Maker Studios.

Churn Rate 371

Churn Rate Vesting Viral eCommerce 371

The Next Web

AUGUST 14, 2013

You can choose not to be profitable, but it must be your choice, not something forced on you by the market). Always have a vesting schedule. Assume the market is efficient and valuable ideas will be discovered by multiple teams nearly instantaneously. That’s the efficient market hypothesis again. Market to your users.

Startup 161

Startup Ruby Technical Review Vesting 161

Altgate

JUNE 25, 2012

They fail to include vesting terms (i.e., It is more common that startups include vesting terms for their non-founding hires. However, those vesting periods often underestimate the time horizon over which key hires should be adding value to the startup. How does our timeframe change as market conditions change?

Equity 44

Equity Vesting Cap Table Technical Review 44

NZ Entrepreneur

MAY 27, 2019

After you have validated your idea and studied your market (which costs next to nothing), you can build screenshots or a very simple demo. You can then use this market research and MVP to show potential customers and also try to hook yourself a technical cofounder/developer etc. Confirm your free digital mag/s here: Marketing Online.

Technical Cofounder 64

Technical Cofounder Cofounder Technical Review Software Review 64