SoCal CTO

SEPTEMBER 27, 2011

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." If the company's valuation is $2 million, $90k is 4.5%.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Startup Professionals Musings

MAY 1, 2023

Level of responsibility and time allocated. Cofounders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The CTO of many technical startups was the original founder. Amount of venture funding provided.

Technical Cofounder 247

Technical Cofounder Equity Distribution Cofounder 247

Startup Professionals Musings

AUGUST 9, 2020

Level of responsibility and time allocated. Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The CTO of many technical startups was the original founder. Amount of venture funding provided.

Cofounder 435

Cofounder Technical Cofounder Equity Intellectual Property 435

Startup Professionals Musings

SEPTEMBER 10, 2018

Level of responsibility and time allocated. Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The CTO of many technical startups was the original founder. Amount of venture funding provided.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Steve Blank

APRIL 23, 2014

In response, venture capital firms like Sequoia and Andreessen/Horowitz are hiring new partners just to work with their portfolio companies and match them to corporations. VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup.

Acquisition 332

Acquisition Intellectual Property Silicon Valley Startup 332

Startup Professionals Musings

AUGUST 4, 2014

Level of responsibility and time allocated. Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The CTO of many technical startups was the original founder. Amount of venture funding provided.

Cofounder 261

Cofounder Stock Founder Technical Cofounder 261

Startup Professionals Musings

SEPTEMBER 30, 2013

A CEO who has “been there and done that” is traction, especially if teamed with a financial lead (CFO) and a product lead (CTO). These are things that can cost very little money, but go a long ways in convincing someone that you are making progress. Of course, a real contract or purchase order from a big customer is even better.

Intellectual Property 281

Intellectual Property Entrepreneur Sweat Equity CTO Hire 281