Berkonomics

SEPTEMBER 13, 2010

As soon as any outside money is ingested into the corporation, others have a vested and legal interest in the behavior of officers entrusted with the best use of funds. Start-ups with one founder rarely have or need a board of directors. In fact, such a board would seem out of place in a one person company.

Covenant 59

Covenant Software Review Stock Options Vesting 59

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? of the time I have no vested interest in having the debate. Stock Option plans. How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Both Sides of the Table

MARCH 21, 2010

Plus, we’re all allured by the false sense that our contract with BigCo is going to “make us&# because once they start using us it will spread like wildfire and the revenue will flow in. They negotiate a “master agreement&# to work with your company with some maybe minimum guarantees in terms of revenue.

Warrant 298

Warrant Dilution Startup Stock Options 298

Scott Edward Walker

NOVEMBER 2, 2011

Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ). Don’t issue stock options unless a proper option plan is in place and a valuation has been done in compliance with Section 409A of the Internal Revenue Code (see post here ).

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

Both Sides of the Table

NOVEMBER 4, 2009

Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. Stock vests for 4 years. Ventro was trading at $8 billion on sub $2 million of revenue. Stock options are the icing on the cake. Don’t join for the options.&#.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

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

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. VCs (and LPs) have a vested interest in having more data, whether they want to invest in your company / firm or not. They aren’t doing this viciously?—?they

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336

Gust

DECEMBER 8, 2011

Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. Make escrow arrangements for restricted stock (i.e., Sales contracts accounting for significant revenue. Newco, Inc.”)

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Scott Edward Walker

OCTOBER 27, 2015

Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ). Don’t issue stock options unless a proper option plan is in place and a valuation has been done in compliance with Section 409A of the Internal Revenue Code (see post here ).

Intellectual Property 40

Intellectual Property Accredited Investor Vesting Delaware 40

Both Sides of the Table

APRIL 22, 2010

Your revenues are “just around the corner.&# Your angel investors are nervous because the VCs aren’t moving that fast to fund your next round. Their not committing quickly to that bridge. .&# That awesome gal you hired in engineering has job options and she knows it. You have Google guys sending you CVs.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

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. vesting would in that situation force founders to toe the line. At Viaweb we managed to raise $2.5

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Gust

SEPTEMBER 17, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? of the time I have no vested interest in having the debate. Stock Option plans. How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points? Me: I know.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Ben's Blog

APRIL 28, 2010

They are paid in terms of stock options that vest over 4 years and cash bonuses for quarterly and yearly performance. For years, he’s avoided taking any revenue inconsistent with optimizing the user experience. The press broadly questioned his business acumen and Facebook’s ability to generate any meaningful revenue.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model. These include: ·       Vesting of Founder Stock. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

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. The final straw came when I asked the latest 25-year old a simple ‘yes / no’ question related to stock options.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40