Cost Employee Preferred Stock Startup 
Startup Professionals Musings
MARCH 14, 2020
Experienced entrepreneurs understand investor expectations of Board representation, preferred stock, and payments based on interim milestones. Potential return on investment cannot be calculated without a clear understanding and evidence of actual costs, revenue flows, and margins. Ask only for the money you can justify.
Startup Professionals Musings
DECEMBER 11, 2022
Experienced entrepreneurs understand investor expectations of Board representation, preferred stock, and payments based on interim milestones. Potential return on investment cannot be calculated without a clear understanding and evidence of actual costs, revenue flows, and margins. Ask only for the money you can justify.
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Up and Running
DECEMBER 1, 2015
If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Finding great employees first.
Both Sides of the Table
JULY 29, 2010
Mike Stern (wasn’t sure which one so leave a comment if it’s you): Q: “is it possible to sell your startup without venture investment if the company has big traction and a large user base?&# I talked about the need to have a restricted stock plan for your earliest employees. This is minutes 8-11. Do it early.
David Teten
MARCH 14, 2018
. – Build out low-cost force multipliers such as scouts , Advisors, Entrepreneurs in Residence, Venture Partners, and so on. Typically these outside resources are paid only on a success basis, so the marginal cost is low. . All of the strategies above have very modest fixed cost. For more, see the Startup Studio Playbook.
Startup Professionals Musings
MARCH 11, 2013
One of the first questions that I get from many entrepreneurs is “How should I set up my company to minimize my setup costs, tax liabilities, and risk of lawsuits?” If you aren’t so sure, need something fast, or need to keep your costs low, then an LLC is the best legal and taxable entity to facilitate your startup.
Steve Blank
APRIL 10, 2019
VC’s have just changed the ~50-year old social contract with startup employees. In doing so they may have removed one of the key incentives that made startups different from working in a large company. For most startup employee’s startup stock options are now a bad deal. Here’s why.
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