Both Sides of the Table

FEBRUARY 6, 2013

Quick summary: Be careful not to have too many co-founders. it’s the most expensive dilution you’ll ever face. And you need to be careful about giving up control to cofounders as much as VCs. I don’t think VCs care as much about co-founders & economics as people think.

Cofounder 388

Cofounder Early Stage Startup Silicon Valley 388

The Next Web

NOVEMBER 20, 2013

With all other things equal, that means that a 50/50 split between two co-founders (evenly split if there are more than two), or a 66/33 split based on the premium for coming up with the original idea, and for starting the initial development efforts and sourcing the original team. Whose idea was it?

Cofounder 136

Cofounder Equity Founder Seed Stage 136

Feld Thoughts

SEPTEMBER 2, 2011

Jane and Dick, our fearless cofounders of SayAhh, have set up an accounting system and created their first set of financial statements. The founders each have common shares that will vest over four years. Bring Praveena in as a founder and offer 10-20% of the company as stock. Time to update the cap table.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

Both Sides of the Table

MAY 9, 2011

I covered what I call “the co-founder mythology.&# Either you’re not technical and you think you need a technical co-founder or vice-versa. Conventional wisdom says that you gain far more in working as a team than you lose by diluted by half before you start. Hire your co-founder.

Cofounder 393

Cofounder Founder Vesting Founder Vesting 393

Up and Running

JUNE 14, 2012

Do I need a co-founder? These are some of the most frequent questions about co-founders that I have heard from entrepreneurs over the years. Do I need a co-founder? How many co-founders should I have? I have seen many successful companies with as few as 2 and as many of 11 co-founders.

Cofounder 90

Cofounder Technical Cofounder Accredited Investor Equity 90

YoungUpstarts

JULY 31, 2019

by Anish Sebastian and Juan Pablo Segura, co-founders of Babyscripts. Founders need seed capital to get their operations up and running, and to begin generating revenue. Ten years ago, Ward Cunningham published a Youtube video that introduced the concept of “technical debt” to the world.

Cofounder 118

Cofounder Burn Rate Technical Cofounder Seed Capital 118

Agile VC

DECEMBER 4, 2014

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth. Sometimes co-founders put off the equity split question for some time.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

Both Sides of the Table

MAY 9, 2018

I left the meeting and had to attend a 3-hour board meeting where two founders have been fighting and each want the other one fired. But your co-founder had been senior at one of the big enterprise software companies and if I remember correctly American Express had run a big pilot with you. Some were interesting, some weren’t.

Software Review 381

Software Review Churn Rate Due Diligence New York 381

Startup Professionals Musings

SEPTEMBER 27, 2023

Every entrepreneur needs to understand the following basics, to be addressed at company formation, as they engage a qualified attorney to draw up the paperwork: Allocate founder’s stock commensurate with commitment. Key founder vesting should have no cliff. This is called stock dilution control.

Stock 240

Stock .Net Vesting Founder Vesting 240

Both Sides of the Table

JANUARY 4, 2014

Nowhere is the politics more difficult than with co-founders, which is why for years I’ve spoken publicly about “ the co-founder mythology.” ” Of course we all go into businesses expecting to be aligned with our co-founders but over time life changes. Equity for the future?

Founder 340

Founder Sacramento Cofounder Technical Review 340

Agile VC

DECEMBER 4, 2014

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth. Sometimes co-founders put off the equity split question for some time.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

Both Sides of the Table

AUGUST 14, 2017

I read commentary or Twitter or blogs and realize that there are also strongly held convictions that there are these evil VCs who do terrible things to mostly altruistic founders. But unlike the popular press reporting of this conflict — 80% of the time it is founder-to-founder conflict and not investor-to-founder conflict.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

This is going to be BIG.

JANUARY 18, 2024

Some of these folks are founders and CEOs, but not at high-growth tech startups. Helpful investors should use their sage advice and support of the founder to make them into better, data-driven decision makers to impact a company, instead of relying on their contractually held voting rights. Perhaps they inherited it.

.Net 88

.Net Cap Table Startup Technical Review 88

Startup Professionals Musings

MAY 8, 2022

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Should you start a company solo or find co-founders to help you? The downside is loss of control and financial dilution.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Startup Professionals Musings

JANUARY 15, 2021

Every entrepreneur needs to understand the following basics, to be addressed at company formation, as they engage a qualified attorney to draw up the paperwork: Allocate founder’s stock commensurate with commitment. Key founder vesting should have no cliff. This is called stock dilution control.

Vesting 298

Vesting Dilution Stock Founder Vesting 298

David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

YoungUpstarts

SEPTEMBER 23, 2017

I raised money and traded equity, but with my venture, I had to make one of the toughest decisions, to build it with some assistance of co-founders. Find the right co-founders. Having co-founders provides a strategy to avoid funding your start-up, with the help of investor’s money.

Cofounder 109

Cofounder Sweat Equity Equity Dilution 109

Both Sides of the Table

NOVEMBER 14, 2017

As the idea went from innovating on software & systems to launching a company to rolling it out in the field brought on Rahul Gandhi as his co-founder to physically launch the company. Sam & Rahul have worked closely together on “innovate & operate” since the earliest days of MakeSpace. Seriously, this happens.

Operations 286

Operations New York City Technical Review Startup 286

Gust

APRIL 11, 2014

Let’s get right down to business: Dilution of founders’ and other early shareholders’ equity in startups is frequently a subject of intense interest and debate. That’s the concept of what some call mathematical dilution. That is not economic dilution, but rather its opposite ( accretion ).

Dilution 162

Dilution Equity Pre-Money Valuation Prospectus 162

Both Sides of the Table

SEPTEMBER 17, 2011

. “We’re all equal co-founders and we don’t care about titles.&# I usually encourage people to think about titles like, “Founder & CTO&# or “Founder & VP Marketing.&#. Dilute your cash, equity or both. Functional roles provide more clarity around roles and responsibilities.

Operations 292

Operations CTO Hire Startup Early Stage 292

Altgate

DECEMBER 15, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← No one wants to tell you your baby is ugly More on Liquidation Preferences → Pre-Money Valuation vs Number of Founders Posted on December 15, 2010 by admin Here’s a chart of the day worth sharing.

Pre-Money Valuation 66

Pre-Money Valuation Valuation Cofounder Founder 66

Startup Professionals Musings

FEBRUARY 27, 2023

Every startup needs to start their funding search looking for grants, with no equity dilution, as well as contests and foundations. Attract a co-founder and key team members. Other project and research reports in their library are a rich source of new ideas, if you are still looking for a place to start.

Arizona 276

Arizona Intellectual Property Accredited Investor Entrepreneur 276

Steve Blank

NOVEMBER 13, 2018

Some (like your peers or even the founders) don’t understand it, and others (the VCs) realize it’s not in their interest to let you know. Unless you have them capture the unique aspects of the culture, it will become diluted and disappear among the new hires. Declare them cultural co-founders. Loss of Community?

Part-Time VPE 333

Part-Time VPE Employee Cofounder Hiring 333

David Teten

AUGUST 19, 2019

RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Capital need of up to $1.5M

Revenue 60

Revenue Technical Review Software Review Equity 60

YoungUpstarts

OCTOBER 24, 2013

One of the challenges for investing in startups has always been the lack of an established way for founders and investors to actually measure and decide on the valuation of the startup concerned. “If you are an angel investor and a venture is seeking capital from you, insist on getting its Worthworm report.

Pre-Money Valuation 150

Pre-Money Valuation Web Technical Review Angel Investor 150

Both Sides of the Table

AUGUST 3, 2010

years ago and told me, “I just got offered the chance to buy this company because the founder doesn’t want to continue. How much dilution should I take for it?&# My friend’s company was pre-revenue. Me: “Zero dilution. Sometimes this involves co-CEO’s. BUT … it’s your company.

Merger 276

Merger Technical Review Early Stage Dilution 276

YoungUpstarts

OCTOBER 16, 2016

By Bryan Miles, CEO and co-founder, Miles Advisory Group, Inc. But take it from what a good friend and advisor once said to me: “Ego is dilutive to net worth.”. Bryan Miles is CEO & co-founder of Miles Advisory Group, Inc. When businesses begin booming, that’s typically a good thing.

Cofounder 100

Cofounder Balance Sheet Small Business Administration Technical Review 100

Startup Professionals Musings

OCTOBER 9, 2021

A popular myth these days is that finishing college only dilutes your entrepreneurial instincts, and the best of the best, including Bill Gates, Steve Jobs and Mark Zuckerberg, dropped out early to hasten their success. I agree with Robert E. Start with your school connections with peer universities around the world.

Entrepreneur 373

Entrepreneur Chad Incubator Dilution 373

The Next Web

OCTOBER 10, 2013

Two more entrepreneurial ventures later, Gleb cofounded online backup provider Backblaze to help consumers affordably, automatically, and safely back up their data. What are the pros and cons of starting a business alone versus with cofounders? How many founders are too many? One” – You have to have a cofounder.

Cofounder 143

Cofounder Technical Cofounder Kenya Dilution 143

Startup Professionals Musings

AUGUST 10, 2019

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Should you start a company solo or find co-founders to help you? The downside is loss of control and financial dilution.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

YoungUpstarts

MAY 6, 2019

You are looking for cofounders that can help you build a product. You have finally found a cofounder that can take care of the startup. If you are getting funded for the first time, which means that you have not diluted the shares of your company, you will be receiving Series A funding. cases you will fail. Commitment.

Startup 104

Startup Technical Cofounder Merger Early Stage 104

Austin Startup

FEBRUARY 4, 2019

L to R: Tiara Zolniez (Co-Founder & Sales), Dr. Roshawnna Novellus (Co-Founder & CEO), Alisha Griffey (COO) The Forrest Four-Cast: February 4, 2019 Fifty diverse startups will aim to impress a panel of judges and a live audience with their skills, creativity and innovation at SXSW Pitch Presented by Cyndx.

Startup 50

Startup Cofounder Technical Review Equity 50

Startup Professionals Musings

MAY 30, 2020

Every startup needs to start their funding search looking for grants, with no equity dilution, as well as contests and foundations. Attract a co-founder and key team members. Other project and research reports in their library are a rich source of new ideas, if you are still looking for a place to start.

Arizona 310

Arizona Intellectual Property Accredited Investor Dividend 310

View from Seed

APRIL 30, 2015

What is it, and how should founders think about it? note: We’d like to be extra clear that founders should not take on venture debt if they don’t have 100% visibility into repaying the loan, as banks that need to recoup their loan my force the company or you as the guarantor into liquidation or bankruptcy.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

View from Seed

DECEMBER 4, 2014

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Startup Professionals Musings

JANUARY 31, 2020

In fact, they may fear team leadership as a burden, or a potential dilution of their ownership. Good entrepreneurs are often diluted in their potential by trying to attack too many new market opportunities or customer requests concurrently. Certainly interfacing to the outside world may not be an inventor forte.

Founder 312

Founder Intellectual Property Dilution Startup 312

Startup Professionals Musings

DECEMBER 14, 2014

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Should you start a company solo or find co-Founders to help you? The downside is loss of control and financial dilution.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268