Both Sides of the Table

SEPTEMBER 6, 2010

Options are gravy - I lived through the first dot com era where we used stock options as a recruiting tool. If Ventro was worth $8 billion on $2 million of sales surely a paltry $1 billion would suffice. We give out stock options. It kind of reminds me of sales employee bonus plans. Then go ahead.

Stock Options 294

Stock Options Stock Valuation Liquidation Preference 294

Startup Professionals Musings

SEPTEMBER 25, 2019

Thus, options don’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 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. More often than not, equity compensation is an attraction and retention tool, rather than a replacement to salary.

Equity 60

Equity Employee Stock Options Vesting 60

Startup Professionals Musings

OCTOBER 21, 2017

Thus, options don’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “potential bonus,” rather than a key part of your compensation for joining a startup. 7% Product Manager,2 -.3%

Stock 140

Stock Stock Options Advisory Board Startup 140

Both Sides of the Table

FEBRUARY 23, 2015

” It was meant both as a call to those writing angel checks into other people’s companies that they ought to think about putting that capital toward themselves either by becoming a startup founder or (and this was my real point) by taking an under-market salary in a company where they can learn the right skills to do it in the future.

Technical Review 150

Technical Review Liquidation Preference Silicon Valley IP 150

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. The most obvious way to explain this is with sales people. COGS” represents the amount that each sale costs you. Two-f **g-billion!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

YoungUpstarts

OCTOBER 24, 2017

Salaries of each member, and how salaries can be adjusted. How the sale of the company is decided. Stock Option documentation. Every startup should have a written founder agreement, which should include the following points: The roles and responsibilities of each member. Contributions from each member.

LLC 168

LLC Startup Stock Options Cofounder 168

Both Sides of the Table

MAY 2, 2015

It freed up Ophir to grow out our sales organization, to work more closely with agencies, to innovate on product and to raise capital. The last thing you want the CEO (or heads of sales, marketing, product) doing is sinking 3 days every month into preparing board packs. Here’s the dilemma. You created the damn product!

Operations 150

Operations Metrics Early Stage Non-Compete 150

Both Sides of the Table

AUGUST 28, 2009

Our sales forecasts were revised downward – many times. Join because you’ll make a good not great salary. We do hand out stock options. Our customers were generally happy but they were pushing us hard for promised features. Our business development discussions took longer than planned. And, oh, by the way.

PR 331

PR Software Review Ireland Germany 331

Berkonomics

OCTOBER 21, 2021

Should be overwhelm prospective employees with stock options and perks? Salaries or hourly wages must be within reasonable limits set by the industry and matched by the competition, both regionally and for the same job classification. Or concentrate our available resources on just plain money as an attraction?

Employee 62

Employee Stock Options Salary Stock 62

The Startup Magazine

JUNE 1, 2023

Be honest with yourself VCs are now going to be looking closer at margins, cost structures and true sales, and product market fit. There are startups out there that are valued at a billion dollars, but because of employee salaries, assets, etc. As CRO, Lester is responsible for sales, client success and marketing at WARP.

Early Stage 111

Early Stage Los Angeles Silicon Valley Cofounder 111

Startup Professionals Musings

JULY 24, 2011

Thus, stock doesn’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “bonus,” rather than a key part of your compensation for joining a startup. Advisory Board Member, 1% Senior Engineer,3 -.7%

Equity 234

Equity Advisory Board Stock Options Stock 234

Up and Running

JANUARY 4, 2017

Most likely you will not be taking a salary for yourself in the first year (or three) of your new venture. Stock options, increased pay over time, a flexible schedule, and use of work resources are all great incentives for snagging yourself a talented new employee. See Also: Business Funding Guide.

Small Business 122

Small Business Social Media Stock Options Employee 122

Startup Professionals Musings

JUNE 20, 2010

Thus, stock doesn’t “pay the mortgage” today, so to speak. Unless you have a sizable nest egg, or a working spouse with an income to support you, I would recommend that you consider any stock options as a “bonus,” rather than a key part of your compensation for joining a startup. Advisory Board Member, 1% Senior Engineer,3 -.7%

Stock 144

Stock Stock Options Advisory Board Startup 144

Startup Professionals Musings

AUGUST 26, 2018

Public ownerships usually lends prestige and credibility to your sales, marketing, and acquisition efforts, but it may work counter to your vision of saving the world. If you want to give stock options, or have already been giving them, the employees will love the liquidity of their options, and the thought of selling shares for a profit.

Exit Strategy 128

Exit Strategy IPO Initial Public Offering SEC 128

View from Seed

AUGUST 6, 2015

When someone goes to work for a larger corporation or public company, the compensation package generally includes an annual salary, a performance bonus or commission plan, 401(k), and health insurance. What’s the strike price ($ value per) of the options I’m being granted?

Equity 120

Equity Employee Cap Table Stock Options 120

View from Seed

AUGUST 6, 2015

When someone goes to work for a larger corporation or public company, the compensation package generally includes an annual salary, a performance bonus or commission plan, 401(k), and health insurance. What’s the strike price ($ value per) of the options I’m being granted?

Equity 120

Equity Employee Cap Table Stock Options 120

Startup Professionals Musings

JUNE 6, 2014

Public ownerships usually lends prestige and credibility to your sales, marketing, and acquisition efforts, but it may work counter to your vision of saving the world. If you want to give stock options, or have already been giving them, the employees will love the liquidity of their options, and the thought of selling shares for a profit.

IPO 236

IPO Initial Public Offering Startup Small Business Administration 236

Startup Professionals Musings

AUGUST 7, 2016

Public ownerships usually lends prestige and credibility to your sales, marketing, and acquisition efforts, but it may work counter to your vision of saving the world. If you want to give stock options, or have already been giving them, the employees will love the liquidity of their options, and the thought of selling shares for a profit.

IPO 120

IPO Initial Public Offering SEC Stock Options 120

Berkonomics

APRIL 30, 2015

Salaries or hourly wages must be within reasonable limits set by the industry and matched by the competition, both regionally and for the same job classification. And there are some industries where tools such as stock options are considered mandatory for a company to be competitive. What a title. Of course money motivates.

Stock Options 48

Stock Options Salary Employee Stock 48

Both Sides of the Table

MAY 23, 2010

If no financing happened then this “note&# may not be converted and thus would be senior to the equity of the company in the case of a bankruptcy or asset sale. You’ve kept a really low burn rate and paid yourself a very small salary. It starts as a debt instrument (e.g.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Feld Thoughts

FEBRUARY 18, 2015

I thought it was a great description and encourage every entrepreneur who has never been through the sale of a company to read it. He asked us a few confirmatory questions, including how much salary we were each getting paid, separate from any distributions from the business, which was $100,000 / year each.

Balance Sheet 70

Balance Sheet NDA Boston Stock 70

Cracking the Code

OCTOBER 12, 2012

This post is a translation of the article: « Pigeons » : le cri d'alarme d'un fonds américain published on LaTribune (12/10/2012) and is a response to the proposed tax law proposed by the government of Francois Hollande, suggesting to tax all capital gain at the same level than salaries or 60%.

France 71

France Europe Capital Gains Dilution 71

Both Sides of the Table

APRIL 27, 2010

I was paid less in salary in 2004 than I was paid at the job I quit in 1999 (a job I had held 8+ years). I learned how to retain employees when stock options were no longer a real currency. But in our first year of sales (and those were really shitty years to be selling software) we sold $2.1 I never built Google.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Berkonomics

NOVEMBER 23, 2023

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if there is no interest, to outside investors. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.

Equity 62

Equity Stock Options Vesting Early Stage 62

www.payne.org

SEPTEMBER 22, 2011

2 Stock Classes: Common and Preferred. 5 Stock vs Options. 6 Founders / Restricted Stock. 7 Salary vs Equity. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers.

Equity 56

Equity Employee Vesting Preferred Stock 56

www.startupnorth.ca

OCTOBER 23, 2010

They are rough estimates.Any one have sample option grants in Canada? I would assume that they are very similar but given the lower valuations and this may change the salary/options mix. How many early employees are forgoing salary? Are the percentages different? The founders will each take a major chunk (e.g.

Employee 41

Employee Founder Salary Equity 41

Berkonomics

SEPTEMBER 28, 2017

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. How many options are appropriate for a grant? How many options are appropriate for a grant?

Early Stage 102

Early Stage Equity Stock Options Vesting 102

The Next Web

SEPTEMBER 16, 2012

Can you live off this (likely lower) salary? What salary are you hoping to earn? For example, if you work for an ecommerce startup in a sales/business development role and are doing deals that bring in money for the company, you are probably in Bucket Y. What about company stock options?

Stock Options 141

Stock Options Startup Stock Salary 141

A Smart Bear: Startups and Marketing for Geeks

JULY 7, 2016

A good answer is previous experience in the industry, including easy sales contacts and insight into the language, life, and challenges of that industry (although this is also a trap ). Not for the money — your salaries won’t be substantially different than their other choices. But why will the 50th employee join ?

San Francisco 170

San Francisco Startup Framework Azure 170

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

And I really believe I can do, on the sales part, so much more if I have additional people. Jason: That’s true in engineering; it’s true in sales; it’s true in marketing. Is it more the marketing/sales side? So for example, if you say look, marketing, sales, marketing, sales, the product basically works.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

A Smart Bear: Startups and Marketing for Geeks

JUNE 27, 2011

ME: Sure, but maybe that competitor would further validate and grow the market, which could increase your sales and make you even more attractive to a buyer! Deal A gets you your number, but your employees get a small signing bonus and no salary raises; they’ll resent you for not taking care of them. Do you prefer Deal B?

Sales 235

Sales Term Sheet Stock Deal Structure 235

Berkonomics

MAY 12, 2010

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. Inducing a new CEO to come aboard usually means creation of a stock option package of 5-8%.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

Small Business Force

JULY 26, 2013

With employee ownership as part of the overall compensation package, this should enable you to keep early salaries at or below market, helping better manage early cash flow. The most straightforward plan is a stock option plan, where the company issues options for employees to purchase stock at a certain price at some future date.

Employee 37

Employee Stock Options Vesting Stock 37

www.paulgraham.com

APRIL 28, 2010

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. For example, VCs generally write it into the deal thatin any sale, they get their investment back first. So after this the option pool is down to 13.7%). [

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Ben's Blog

MARCH 17, 2011

When your head of sales interviews for her next job, she won’t want to say that despite the fact that she ran a global sales force with hundreds of employees, her title was “Dude.”. Andreessen argues that people ask for many things from a company: salary, bonus, stock options, span of control, and titles.

Employee 78

Employee Stock Options Engineer Management 78

techcrunch.com

OCTOBER 23, 2010

Not ‘maybe’ not ‘if this makes $’ not even ‘when we make $ – see how many companies went bust with all the codeheads accepting part ownership or ‘options’ but cash in the hand. ’ Maybe this article is a little too simplistic, a fairy tale. Who knows.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84