Both Sides of the Table

FEBRUARY 25, 2019

Here are some observations I have from this exposure: If a company moves from strength-to-strength with predictable outcomes, easy financings, low staff turn-over, limited competitive threats then the composition of the board probably doesn’t matter as much. What are the kinds of difficult tasks that need to be solved by boards?

LP 269

LP Startup Burn Rate Stock Options 269

The Next Web

DECEMBER 2, 2013

Considering Facebook’s scale, the company is now in the business of operating power plants to operate its servers, therefore, Schippers estimates that Facebook has a $30 million dollar monthly burn rate just for hosting. Suddenly, those multi-million dollar financing rounds that startups raise don’t seem so outrageous!

Cost 168

Cost San Francisco New York City Ruby 168

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. You’ve kept a really low burn rate and paid yourself a very small salary.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Both Sides of the Table

JULY 13, 2013

I got a job at a bank, and I worked in their corporate finance group. We had a finance group for all of the bank branches based in San Diego, and I wrote programs to download stuff from the mainframe so we could do analysis three days faster than they could send us the data. How are you going to get employees?

Cofounder 337

Cofounder Technical Cofounder San Diego Startup 337

Startup Professionals Musings

JANUARY 7, 2014

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Carrying a non-performing employee probably triples the costs, since you are paying two people to do the job, and at least one other is de-motivated by the inequity.

Startup 265

Startup Intellectual Property LLC Burn Rate 265

Startup Professionals Musings

NOVEMBER 28, 2012

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Carrying a non-performing employee probably triples the costs, since you are paying two people to do the job, and at least one other is de-motivated by the inequity.

Entrepreneur 274

Entrepreneur Intellectual Property LLC Burn Rate 274

Both Sides of the Table

FEBRUARY 8, 2016

The startup industry may be “resetting,” which doesn’t mean a “crash” but rather just a resetting of valuations, timescales, winners/losers, capital sources and the relative emphasis of growth rates vs. burn rates. The terrible consequence is that some great companies struggle to get financed.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Valuation 150

Gust

DECEMBER 29, 2013

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Carrying a non-performing employee probably triples the costs, since you are paying two people to do the job, and at least one other is de-motivated by the inequity.

Startup 183

Startup Intellectual Property LLC Burn Rate 183

dondodge.typepad.com

JANUARY 15, 2011

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? How much equity should I grant to early employees? It isnt always possible to have a competitive bidding situation at each financing round so here are some guidelines for funding sources and percentages.

Equity 40

Equity Employee Dilution Valuation 40

Professor VC

MARCH 10, 2009

Certainly not to say they couldnt have raised more cash and built this in to a bigger company, but was nice to have the option of going either way and doing what was right for the founders and employees. I also teach Entrepreneurial Finance at San Jose State. Can Entrepreneurship Be Taught? ► October. (1). ► September. (1).

Bootstrapping 28

Bootstrapping San Jose Silicon Valley Software Review 28

Professor VC

NOVEMBER 19, 2009

If you have a reputation for cutting corners, not treating employees or partners right, it will become very difficult to do business. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. I also teach Entrepreneurial Finance at San Jose State.

San Jose 43

San Jose Silicon Valley Las Vegas Venture Capital 43

Professor VC

JANUARY 17, 2008

He then went on to say that this type of financing was good for the entrepreneur (vs taking VC money) because they got to keep more of the company. There needs to be enough equity to go around for founders, early investors, later investors, and employees. I also teach Entrepreneurial Finance at San Jose State. ► October.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

ithacaVC

MARCH 14, 2011

It may have multiple people in each category, but for purposes of this post, let’s assume one tech founder, one business founder and then some additional “first employees” It would be normal for these first employees to be involved in product development.

Early Stage 45

Early Stage Founder Burn Rate Cofounder 45

ReadWriteStart

APRIL 30, 2020

Many fail because they fail to keep their burn rate in check and then run out of investors who are willing to fund their operations. They treat their startup’s burn rate like it’s etched in stone. The latter group also tends to spend every waking moment in the pursuit of lining up new financing.

Burn Rate 107

Burn Rate Management Startup Early Stage 107

Genuine VC

FEBRUARY 9, 2011

Evaluating a startup as a prospective employee is tough, especially when you compare to VCs. When there are unique and strong external & internal tailwinds which can push a startup forward, there is more opportunity and overall upside for all employees. So what is a prospective employee to do?

Startup 146

Startup Burn Rate Technical Review Down Round 146

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Up and Running

APRIL 2, 2020

Instead, start with the quick and easy lean business plan , to help you map out your business and financing activities over the next few months. Also, for your crisis plan, be sure that you know your burn rate and runway , which is how quickly you are using up your cash reserves and how long you have before you run out of cash.

Forecast 157

Forecast Salary Business Plan Balance Sheet 157

abovethecrowd.com

FEBRUARY 24, 2015

Historically, different financial institutions specialized in different stages, because the assessment of risk and opportunity was considered unique at each stage — for example, a seed investor was unlikely to do late-stage financing, and vice versa. Some have argued that each of these companies would already be public in a prior era.

IPO 40

IPO Liquidation Preference Valuation Technical Review 40

OnlyOnce

SEPTEMBER 30, 2020

Think about the journey of a company from a founding team to 50 employees. — not to mention needing strategic leadership of those functions as the company grows from 50 to 100 to 250 to 500 employees. Then your VP Finance Sally gets lured away by an even hotter and sexier new startup and leaves a sudden, gaping hole on your team.

Burn Rate 71

Burn Rate Leadership Search Curation 71

philipsmith.typepad.com

SEPTEMBER 24, 2011

While there have been times in the last dozen or so years, usually during times of venture capital excess, that cash to founders, early-stage executives and other key employees has matched regular market compensation (still with the upside of the equity), this is not true in the vast majority in the start-up game.

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

OnlyOnce

SEPTEMBER 30, 2020

Think about the journey of a company from a founding team to 50 employees. — not to mention needing strategic leadership of those functions as the company grows from 50 to 100 to 250 to 500 employees. Then your VP Finance Sally gets lured away by an even hotter and sexier new startup and leaves a sudden, gaping hole on your team.

Burn Rate 48

Burn Rate Leadership Search Curation 48

Both Sides of the Table

FEBRUARY 14, 2016

Social networking finally came of age connected the planet and leading to enormous wealth creation for Facebook employees and investors. Smart phones finally took off leading to enormous wealth creation for Apple employees and investors but also helped propel Google, Facebook, Twitter, Instagram, Snapchat, WhatsApp and others.

Valuation 150

Valuation Down Round Startup Later Stage 150

www.chubbybrain.com

SEPTEMBER 28, 2011

declined Microsoft’s offer (summer 2000) to be the first enterprise software company with a.NET product (a Microsoft employee came back from a follow-up meeting with Allen and said “He reminds me of a lot of CEOs of companies that we’ve worked with… that have gone bankrupt.”). During this year they.

Software Review 79

Software Review Startup Technical Review Vesting 79

Reid Hoffman

NOVEMBER 14, 2018

But it is also clearly faster, and has allowed Uber to grow its engineering team (which is typically a major challenge) at higher rate. Chaotic, unstable organizations make employees nervous and hurt morale. You can’t set a culture at 10 employees, and expect it to be unaffected by the next 100 employees you hire.

Engineer 28

Engineer Burn Rate Hiring Dilution 28