Startup Professionals Musings

OCTOBER 21, 2017

Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.”

Stock 140

Stock Stock Options Advisory Board Startup 140

Startup Professionals Musings

JANUARY 29, 2018

I’ll never forget that great sense of excitement I felt when I incorporated my first business, and realized that I was now the proud owner of 10 million shares of common stock. Even though initial stock has no market value today, it is extremely valuable in dividing equity ownership between co-founders, investors, and early partners.

Stock 129

Stock Vesting Preferred Stock Cofounder 129

Startup Professionals Musings

SEPTEMBER 22, 2012

Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. Thus, stock doesn’t “pay the mortgage” today, so to speak. Your compensation is the total package of stock plus salary plus benefits.

Stock Options 230

Stock Options Stock Advisory Board Startup 230

Startup Professionals Musings

MAY 1, 2023

Even with an agreed initial equity split, it’s smart to have Founder’s stock actually issue or vest over a period of at least two years, on a month-by-month basis. Obviously it should be amended later, as roles are more clearly defined, and execution proceeds.

Technical Cofounder 247

Technical Cofounder Equity Distribution Cofounder 247

Startup Professionals Musings

JULY 1, 2022

Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.”

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Startup Professionals Musings

FEBRUARY 9, 2020

Outside professionals are always available, but they may have their own agenda, such as building a career, making money quickly, or managing up the stock price for a quick exit. The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. The operations superstar.

Technical Cofounder 308

Technical Cofounder Cofounder Advisory Board Stock Options 308

Startup Professionals Musings

JULY 13, 2022

People today put great stock in the online feedback from other customers, and they note how and if you appear to be listening and responding. The businesses that are most successful at converting users into growth are those who interact with their followers the most and frequently post content related to their brand.

Technical Review 355

Technical Review Social Media Channel Flash 355

Startup Professionals Musings

AUGUST 9, 2020

Even with an agreed initial equity split, it’s smart to have Founder’s stock actually issue or vest over a period of at least two years, on a month-by-month basis. Obviously it should be amended later, as roles are more clearly defined, and execution proceeds.

Cofounder 435

Cofounder Technical Cofounder Equity Intellectual Property 435

Startup Professionals Musings

MARCH 29, 2015

Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.”

Stock Options 120

Stock Options Stock Advisory Board Startup 120

Startup Professionals Musings

JANUARY 24, 2021

During that period, it is very difficult for either party to get out of the deal, since there is no public market for the stock, and business divorces normally mean bankruptcy. Startup equity investments imply a long-term business relationship, lasting an average of five years. Marty Zwilling.

Technical Review 379

Technical Review Due Diligence Term Sheet Bankruptcy 379

Startup Professionals Musings

AUGUST 31, 2019

The reasons are a lot more complex than the meltdown of key investment banks in the US a few years ago, so don’t expect a big change in the numbers soon, even with recent stock market rallies. Today around 90 percent of successful startups are still acquired by bigger companies, as the safer and preferred method of growth and funding.

IPO 210

IPO SEC Prospectus Startup 210

Startup Professionals Musings

NOVEMBER 2, 2022

Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk. Recruit the best team members and provide incentives. Trying to save money by recruiting family members, or hiring only interns, is a bad risk.

Forecast 304

Forecast Stock Options Technical Review Metrics 304

Startup Professionals Musings

MAY 18, 2015

When an entrepreneur first incorporates his or her business, he or she may find him or herself the proud owner of 10 million shares of common stock, commonly called founder’s shares. Make sure the government waits for a stock sale to collect taxes. Spread stock issuance over an earning period. In the U.S.,

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Startup Professionals Musings

NOVEMBER 26, 2022

Maintaining your team’s passion and freedom to focus first on innovating for customers are only a couple of the reasons for thinking hard before you seek money from crowdfunding, angel investors, venture capital organizations, or attempt to qualify for a public stock offering.

Cost 267

Cost Bootstrapping Advisory Board Startup 267

Startup Professionals Musings

JANUARY 20, 2019

Pump and dump stock schemes. Don’t fall for claims from “insiders” who offer stock that you can turn around quickly. It’s usually stock that has been artificially pumped up by their big buy, who take their gain when you buy, and leave you with a big loss on their dump.

Technical Review 228

Technical Review Non-disclosure Agreement Due Diligence Term Sheet 228

Startup Professionals Musings

SEPTEMBER 29, 2021

Whether you are the company CEO, or a stock room clerk, you can make a difference by refusing to succumb to the negativity of others around you. Offer positive solutions to your business challenges, rather than just highlighting the problem, assigning blame, or delivering angry diatribes.

Employee 371

Employee Salary Hiring Stock 371

Startup Professionals Musings

MAY 22, 2020

Calculate employee stock option values and vesting times, as well as salary. Since nine out of ten startups fail completely, serious investors look for a 10X return on their investment within five years. Look for examples of similar companies and revenue multiples achieved from acquirers.

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

Startup Professionals Musings

OCTOBER 7, 2010

In reality, so-called “founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. Here are some typical special terms for founder’s stock: Negligible par value. Stock survives investment.

Stock 214

Stock Vesting Common Stock Founder Vesting 214

Startup Professionals Musings

FEBRUARY 18, 2023

Calculate employee stock option values and vesting times, as well as salary. Since nine out of ten startups fail completely, serious investors look for a 10X return on their investment within five years. Look for examples of similar companies and revenue multiples achieved from acquirers.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Startup Professionals Musings

JANUARY 15, 2021

When an entrepreneur first incorporates a business, they may find themselves the proud owner of 10 million shares of common stock, commonly called founder’s shares. Make sure the government waits for a stock sale to collect taxes. Spread stock issuance over an earning period. This is called stock dilution control.

Vesting 298

Vesting Dilution Stock Founder Vesting 298

Startup Professionals Musings

AUGUST 8, 2022

An even better alternative could be stock options, linked to the long-term success of the company. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. You need different rewards for a team running an innovation project, such as reaching agreed milestones.

Stock Options 277

Stock Options Incubator Framework Stock 277

Startup Professionals Musings

SEPTEMBER 11, 2017

The reasons are a lot more complex than the meltdown of key investment banks in the US a few years ago, so don’t expect a big change in the numbers soon, even with recent stock market rallies. Today around 90 percent of successful startups are still acquired by bigger companies, as the safer and preferred method of growth and funding.

IPO 218

IPO SEC Prospectus Technical Review 218

Startup Professionals Musings

JULY 26, 2020

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. Most startup founders voluntarily exit or are pushed out, and the fun is gone. Analysts want escalating profits. Public companies bring new expectations of benefits.

Cost 319

Cost IPO Exit Strategy Initial Public Offering 319

Startup Professionals Musings

FEBRUARY 29, 2020

Maintaining your team’s passion and freedom to focus first on innovating for customers are only a couple of the reasons for thinking hard before you seek money from crowdfunding, angel investors, venture capital organizations, or attempt to qualify for a public stock offering.

Bootstrapping 310

Bootstrapping Advisory Board Venture Capital Startup 310

Startup Professionals Musings

FEBRUARY 8, 2020

Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk. Recruit the best team members and provide incentives. Trying to save money by recruiting family members, or hiring only interns, is a bad risk.

Management 322

Management Entrepreneur Forecast Stock Options 322

Startup Professionals Musings

JULY 9, 2014

Founders stock, and stock options, will be worth nothing for the first several years, if not forever. Who gets stock options, and how many? Without risking all your life savings, you may find that corporate desk you have as an alternative is a lot more satisfying. How much money has been invested so far?

Technical Review 250

Technical Review Stock Options Due Diligence Silicon Valley 250

Startup Professionals Musings

FEBRUARY 1, 2015

The reasons are a lot more complex than the meltdown of key investment banks in the US a few years ago, so don’t expect a big change in the numbers soon, even with recent stock market rallies. entrepreneur IPO m&a startup Stock Exchange' The M&A alternative looks simple by comparison. Constant pressure to increase earnings.

IPO 120

IPO SEC Prospectus Startup 120

Startup Professionals Musings

JUNE 20, 2010

Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened to many companies in the last few years. Thus, stock doesn’t “pay the mortgage” today, so to speak. Your compensation is the total package, stock plus salary. 7% Product Manager,2 -.3% Marty Zwilling.

Stock 144

Stock Stock Options Advisory Board Startup 144

Startup Professionals Musings

SEPTEMBER 14, 2022

A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock. Yet reverse mergers are not all bad.

Merger 261

Merger OTC IPO Due Diligence 261

Startup Professionals Musings

SEPTEMBER 25, 2019

Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.”

Equity 237

Equity Stock Options Advisory Board Stock 237

Startup Professionals Musings

JANUARY 18, 2017

Pump and dump stock schemes. Don’t fall for claims from “insiders” who offer stock that you can turn around quickly. It’s usually stock that has been artificially pumped up by their big buy, who take their gain when you buy, and leave you with a big loss on their dump.

Technical Review 120

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 120

Startup Professionals Musings

SEPTEMBER 10, 2018

Even with an agreed initial equity split, it’s smart to have Founder’s stock actually issue or vest over a period of at least two years, on a month-by-month basis. Obviously it should be amended later, as roles are more clearly defined, and execution proceeds.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Startup Professionals Musings

SEPTEMBER 26, 2013

Pump and dump stock schemes. Don’t fall for claims from “insiders” who offer stock that you can turn around quickly. It’s usually stock that has been artificially pumped up by their big buy, who take their gain when you buy, and leave you with a big loss on their dump.

Technical Review 202

Technical Review Non-disclosure Agreement Due Diligence Entrepreneur 202

Startup Professionals Musings

FEBRUARY 18, 2018

Outside professionals are always available, but they may have their own agenda, such as building a career, making money quickly, or managing up the stock price for a quick exit. The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. The operations superstar.

Technical Cofounder 144

Technical Cofounder Cofounder Advisory Board Startup 144

Startup Professionals Musings

JUNE 11, 2014

Outside professionals are always available, but they may have their own agenda, such as building a career, making money quickly, or managing up the stock price for a quick exit. The rest can come from early hires (with stock options to assure commitment), equity investors, or even strategic partners. The operations superstar.

Technical Cofounder 245

Technical Cofounder Cofounder Advisory Board Startup 245

Startup Professionals Musings

OCTOBER 18, 2015

Founders stock, and stock options, will be worth nothing for the first several years, if not forever. Who gets stock options, and how many? Without risking all your life savings, you may find that corporate desk you have as an alternative is a lot more satisfying. How much money has been invested so far?

Technical Review 120

Technical Review Entrepreneur Stock Options Due Diligence 120

Startup Professionals Musings

NOVEMBER 6, 2019

An even better alternative could be stock options, linked to the long-term success of the company. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. You need different rewards for a team running an innovation project, such as reaching agreed milestones.

Stock Options 236

Stock Options Incubator Framework Stock 236