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. When we set-up our next business our first decision was to operate with a remote workforce.

Early Stage 146

Early Stage Los Angeles Silicon Valley Cofounder 146

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. COGS” represents the amount that each sale costs you. million to fund operations in their first year of operations. Two-f **g-billion!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Both Sides of the Table

JANUARY 21, 2010

Forget to get around to setting up that Employee Stock Option Plan and want to be able to give the early guys their options at a low strike price? They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee. Shame about that pesky FAS 157 ruling.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

YoungUpstarts

JULY 17, 2020

The first step in any economic crisis is to evaluate your spending channels, and determine where you can cut costs. Are you paying money for SaaS services that are no longer relevant or can be taken on by employees? Support Your Employees. Of course, you want to make sure that your employees are also feeling financially secure.

Startup 287

Startup Wisconsin Stock Options Dividend 287

YoungUpstarts

OCTOBER 24, 2017

Operating as an LLC or a corporation would provide protections. If you plan to operate as a limited partnership, corporation or LLC, you will need to file the appropriate documents with state authorities. There will be additional filing and operation costs for these entities, due to tax, accounting and legal issues.

LLC 168

LLC Startup Stock Options Cofounder 168

The Startup Magazine

MARCH 1, 2022

However, this is only possible when an organization has educated employees at its core. An excellent corporate culture is tolerant, utilizes technology, and ensures equal treatment of all employees no matter where they stand on the hierarchical ladder. About 98% of American employees look towards empathetic leaders for motivation.

Framework 158

Framework Stock Options Leadership Employee 158

Up and Running

JULY 2, 2014

We shared all of this with our attorney before she helped us write our Operating Agreement (OA), so we assumed we were in good hands. That is, until one very savvy investor from the interested angel group asked for a copy of our operating agreement. team roles and responsibilities, ownership percentages, “what if” scenarios, etc.).

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Startup Professionals Musings

AUGUST 26, 2018

There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. 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

Startup Company Lawyer

MARCH 12, 2009

C corps, LLCs, and S corps differ significantly in the areas of taxation, ownership, fundraising, governance and structure, and employee compensation. Any company that raises venture financing will need to be a C corp in order to issue preferred stock. Almost all technology startup companies that I work with are C corps.

LLC 61

LLC Stock Options Preferred Stock Stock 61

Startup Professionals Musings

JUNE 6, 2014

There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. 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

www.joelonsoftware.com

MARCH 24, 2010

Wanted: High Frequency Performance Operations Specialist at Two Sigma Investments (New York, New York United States). Our biannual reviews are done internally by management; they are not intended as a way to give employees grades or gold stars. Level 12-13 Operational. File a CV and let the great jobs come to you!

Software Review 48

Software Review Stock Options Salary Technical Review 48

www.thedailymuse.com

SEPTEMBER 18, 2012

It’s essential to make sure you take reasonable steps to control risk in your interactions with customers, suppliers, users, employees, and the general public. Hiring employees. What’s the typical hourly cost? How much will it cost to incorporate your new start-up? Third parties and the public. Each other.

Hiring 56

Hiring LLC Intellectual Property Private Equity 56

Startup Professionals Musings

AUGUST 7, 2016

There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. 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

Gust

OCTOBER 11, 2012

While you will definitely need to be a corporate entity before you can accept funding from any investor (or issue stock options to any employees), the specific corporate status of the venture at this stage is much less important to investors than its functional status.

Delaware 122

Delaware Stock Options Cofounder Stock 122

www.inc.com

SEPTEMBER 24, 2011

Office and Operations. Employee Benefits. Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. "We

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Berkonomics

AUGUST 29, 2019

Boards provide or see to it that there are resources for the company (especially money) to operate. The board is responsible for approval of all deferred compensation for all employees at all levels, such as stock option grants, and is responsible for the vision and strategies for growth and protection of the corporate asset.

Stock Options 48

Stock Options Stock Naming Employee 48

Gust

DECEMBER 8, 2011

Determine the allocation of equity among co-founders, early employees or other service providers, and future contributors as applicable, as well as the vesting schedule , if any, that will apply. Form a legal entity to operate the business (we’ll use a Delaware corporation as an example for Newco). Offer letters for employees.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Berkonomics

OCTOBER 4, 2012

Boards provide or see to it that there are resources for the company (especially money) to operate. The board is responsible for approval of all deferred compensation for all employees at all levels, such as stock option grants, and is responsible for the vision and strategies for growth and protection of the corporate asset.

Stock Options 69

Stock Options Stock Naming Employee 69

Agile VC

FEBRUARY 2, 2012

How They Do It : Operate a social network at Facebook.com, through Facebook’s mobile apps, and the Facebook Platform which lets other websites extend Facebook’s tools for authentication and social sharing. who derive a meaningful chunk of their revenue from operating ad networks. Headquarters : Palo Alto, CA.

IPO 100

IPO South Korea Venezuela Revenue 100

Up and Running

JUNE 21, 2011

Make sure your key employees are incentivized. Make sure to put in place incentives (like a sale bonus or stock options program) today to avoid eleventh-hour power plays. It is advisable to cut expenses that aren’t mission critical to operating your business (like the yearly “company conferences” in St. Bart’s, etc.)

Sales 86

Sales Investment Bankers CPA Stock Options 86

Both Sides of the Table

MAY 23, 2010

the loan converts at 15-20% discout to the new money coming in) or your investor will get “warrant coverage&# which is similar to an employee stock option in that it gives the investor the right but not the obligation to invest in your company in the future at a defined priced. But piers are often counter productive.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Both Sides of the Table

APRIL 27, 2010

Moving on … My second post was directed at employees. If you’ve done it for a long time then I usually advise hiring managers to hire you as contractors and not full-time employees. Most of what I learned about operating startups I learned from the really tough years at my first company from 2001-2003.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

infochachkie.com

SEPTEMBER 24, 2011

For instance, many a BDC CEO has initiated a consultant to study cost cutting issues before announcing a significant layoff. Unlike employee training costs, which can typically be spread over years of service, the relative return from training a consultant is modest and pricey. Their story, market positioning, products, etc.

Equity 40

Equity Silicon Valley Cofounder PR 40

VC Adventure

DECEMBER 4, 2009

since 1980 has been generated by firms operating less than five years.” 3) Stop putting up barriers to investment and making it hard for start-up companies to operate. Collectively, it amounts to a massive tax on private companies – but one where the neither the government, the companies or employees benefit.

Accredited Investor 49

Accredited Investor Venture Capital Stock Options Government 49

YoungUpstarts

AUGUST 17, 2011

It’s time for the nation’s education leaders to start operating like scrappy entrepreneurs. The “benevolent” part means doing the right thing for the right reasons, for all stakeholders — in education, this means your teachers and other school employees, your students, their parents, etc. Don’t worry; it’s not as scary as it sounds.

Cofounder 222

Cofounder Programming Leadership Ohio 222

ReadWriteStart

JANUARY 28, 2022

In the case of a warrant, the expiration date is the final day on which it can be converted into common stock. Considering that a warrant is often issued to decrease the cost of a debt issuer, the expiration period is typically more than two years after the warrant is first issued. Equity for Employees. Equity for Co-founders.

Valuation 108

Valuation Equity Warrant Common Stock 108

Ben's Blog

APRIL 28, 2010

Andy Grove was Intel’s third employee (after the two cofounders Robert Noyce and Gordon E. At the time Jobs regained control of Apple, the conventional wisdom said that Apple was getting killed by “PC Economics” and had to separate the operating system from the hardware. were the driving force behind Intel and IBM, respectively.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Duct Tape Marketing

MAY 23, 2019

Jenny Blake: I was there for five and a half years, and halfway into my time there … During that five years, the company grew from 6,000 to 36,000 employees, and one major issue became retention. We had a handful of employees, and a handful of accounts that we did pretty much whatever they said they’d paid us to do.

Programming 62

Programming Finance Turkey Stock Options 62

www.paulgraham.com

APRIL 28, 2010

Most startups operate close to themargin of failure, and the distraction of having to deal with clientscould be enough to put you over the edge. The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. There are few large, privatetechnology companies.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Up and Running

JUNE 19, 2015

I have no idea what kind of offices, how many employees do you have, what are you doing, that is not my strength. Lower cost, more flexible payment terms, and really just keeping your personal credit clean. I don’t know, I have no idea what 50 million dollar company looks like. My strength is understanding. That’s my dream.

Cloud 60

Cloud Small Business Silicon Valley Media 60

techcrunch.com

OCTOBER 23, 2010

This is the first post in what’s going to be a series of blogs on how to go from nothing – no connections, no team, no money and no knowledge of how the startup industry really works – to operating a growing business. I’m taking a 52 week course in how to start up, run, operate, and achieve self employment.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

YoungUpstarts

JULY 17, 2012

Most companies pump out the same old gadgets and services, placing more of a focus on cost and efficiency than creativity. Institutional shareholders, by and large, own the vast majority of public company stocks for 12 months or less. They’re more like stock ‘renters’ than owners. But they don’t. They can’t.

Virginia 219

Virginia Operations Stock Stock Options 219