Both Sides of the Table

AUGUST 14, 2017

As a starting point the board is intended to have legal and financial responsibilities to a few key constituencies: shareholders, debt holders, creditors, employees, government and major parties with whom the business operates. ICOs certainly have a place in startup financing.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

Both Sides of the Table

JANUARY 21, 2010

If you’re a startup and you don’t have a close relationship with a few law firms you’re really missing one of the most important relationships that any entrepreneur can have. I write about some of the lessons in my post on Startup Mistakes. I know that people have an allergy to lawyers out of fear of being screwed.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

YoungUpstarts

JULY 17, 2020

The startup world is a perfect microcosm for these strange times — even in normal circumstances, a startup is always on a tightrope, one step away from unicorn status or financial ruin. As startups pivot to meet the changing landscape, here are four things to consider: 1. Support Your Employees.

Startup 287

Startup Wisconsin Stock Options Dividend 287

Startup Professionals Musings

SEPTEMBER 14, 2022

With the current volatile economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. Is your startup really ready to play in the corporate world? These looming constraints can turn your startup dream into a nightmare, all to increase funding.

Merger 261

Merger OTC IPO Due Diligence 261

Both Sides of the Table

JUNE 17, 2017

There are certain topics that even some of the smartest people I talk with who aren’t startup oriented can’t fully grok. It’s common cocktail party chatter to hear people confidently pronounce that some well known startup is sure to blow up because, “How could they succeed when they’re not even profitable!” What did they actually do?

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

The Startup Magazine

JUNE 1, 2023

By Daniel Sokolovksy, Co-Founder and CEO, WARP and Troy Lester, Co-Founder and CRO, WARP The dissolution of Silicon Valley Bank (SVB) was more than just a bank collapse, it was a reality check for both startups and the VCs that fund them. So what does an early-stage company do to avoid the doom and gloom plaguing the world of startups?

Early Stage 108

Early Stage Los Angeles Silicon Valley Cofounder 108

Startup Professionals Musings

DECEMBER 8, 2019

With the current strong economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. Is your startup really ready to play in the corporate world? These looming constraints can turn your startup dream into a nightmare, all to increase funding.

Merger 303

Merger OTC IPO Due Diligence 303

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.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Austin Startup

NOVEMBER 29, 2017

In September 2017, I spent 2 weeks in Austin, Texas to understand what makes this vibrant startup ecosystem tick. It follows up on my posts discussing why early stage startups should — or should not — move to Silicon Valley. Should Early Stage Startups Move to Austin because of Capital? Money is like gasoline during a road trip.

Early Stage 48

Early Stage Austin Silicon Valley Texas 48

View from Seed

AUGUST 6, 2015

When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. What’s the strike price ($ value per) of the options I’m being granted?

Equity 120

Equity Employee Cap Table Stock Options 120

View from Seed

AUGUST 6, 2015

When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. What’s the strike price ($ value per) of the options I’m being granted?

Equity 120

Equity Employee Cap Table Stock Options 120

Up and Running

JULY 2, 2014

Picking the right attorney in your startup is as important as picking the right business partner. My business partner and I made many mistakes in our first tech startup, and so many of them were the result of choosing a lawyer who was a terrible fit. Let me paint the picture for you: We were about two months into our startup idea.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Startup Professionals Musings

NOVEMBER 25, 2019

The new era of highly connected and interactive technology is changing not only how business employees interact with customers, but also how they interact with each other, and with their company. I am happy to see reports that young companies are leading the way in these trends, on both the customer and the employee side.

Stock Options 319

Stock Options Cloud Differentiation Social Media 319

YoungUpstarts

OCTOBER 24, 2017

Make sure you take care of these four legal things before launching your startup. There will be additional filing and operation costs for these entities, due to tax, accounting and legal issues. Converting will come at a higher cost. If you plan to hire employees, make sure that you have the appropriate documentation.

LLC 168

LLC Startup Stock Options Cofounder 168

Both Sides of the Table

FEBRUARY 25, 2019

This is part of a series on a Board of Directors at a Startup. High Functioning Startup Boards High-functioning boards have a tight-knit relationship between all members based on mutual trust and admiration. They are able to divide responsibilities and work to gain consensus on tough decisions that every startup inevitably faces.

LP 269

LP Startup Burn Rate Stock Options 269

The Startup Magazine

SEPTEMBER 28, 2021

Every business needs benefits to keep employees happy, comply with relevant regulations and outdo competitors when attracting new talent. To that end, here are some tips on how to create firm foundations for employee benefits. As such, any aims you have for your employee benefits structure must be centered around a realistic budget.

Stock Options 129

Stock Options Retention Salary Employee 129

Startup Professionals Musings

MAY 24, 2014

The new era of highly connected and interactive technology is changing not only how business employees interact with customers, but also how they interact with each other, and with their company. I am happy to see reports that young companies are in the forefront of these trends, on both the customer trends and the employee trends.

Entrepreneur 261

Entrepreneur Startup Stock Options Social Media 261

Both Sides of the Table

MAY 2, 2015

It’s such a tricky balance between being cost-focused & scrappy versus being impractical with how you spend your time. Great startups have budgets. It turns out that financial reporting (GAAP) doesn’t take into account the only thing that matters to startup survival – cashflow. And so must you.

Operations 150

Operations Metrics Early Stage Non-Compete 150

ReadWriteStart

JANUARY 28, 2022

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. Why do startups issue company equity? You have a financial stake in a startup if you have equity.

Valuation 108

Valuation Equity Warrant Common Stock 108

Startup Professionals Musings

JANUARY 3, 2018

The new era of highly connected and interactive technology is changing not only how business employees interact with customers, but also how they interact with each other, and with their company. I am happy to see reports that young companies are leading the way in these trends, on both the customer and the employee side.

Startup 154

Startup Stock Options Cloud Differentiation 154

Startup Professionals Musings

MAY 3, 2014

With the uptick in the economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. Is your startup really ready to play in the corporate world? These looming constraints can turn your startup dream into a nightmare, all to increase funding.

Merger 246

Merger OTC IPO Stock 246

VC Adventure

AUGUST 15, 2018

Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of a company’s then preferred price (because common equity sits behind preferred equity there is typically a discount applied to the FMV of common stock to account for this “overhang”).

Valuation 48

Valuation Common Stock Cap Table Software Review 48

Startup Professionals Musings

JUNE 6, 2014

With the recent apparent successes of several startups in taking their company public (initial public offering) and raising billions of dollars, I’m hearing a groundswell of enthusiasm from new entrepreneurs to follow in their footsteps to fund their companies and become billionaires overnight. Exposure to increased liability risk.

IPO 236

IPO Initial Public Offering Startup Small Business Administration 236

Startup Professionals Musings

JANUARY 13, 2018

With the current strong economy, as an active startup mentor, I’m seeing a new surge of entrepreneurs and startups, with the commensurate scramble for funding. Is your startup really ready to play in the corporate world? These looming constraints can turn your startup dream into a nightmare, all to increase funding.

Merger 198

Merger OTC IPO Due Diligence 198

Gust

APRIL 9, 2014

Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.). Uncategorized company equity dilution founder investors startup' original post can be found on Quora @ [link] *.

Dilution 150

Dilution Equity Vesting Stock Options 150

The Startup Magazine

AUGUST 6, 2021

The question for many entrepreneurs is, how do you start a business the right way with the right startup business structure? . You have to have a clear and powerful value proposition in order to attract and keep customers and your startup business structure needs to reflect that. Many startups recruit employees in this way.

Limited Liability Company 162

Limited Liability Company Silicon Valley Business Model Stock Options 162

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 129

Framework Stock Options Leadership Employee 129

Startup Professionals Musings

AUGUST 26, 2018

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to stay low, I still hear it touted often as the preferred exit strategy. There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. Analysts want escalating profits.

Exit Strategy 128

Exit Strategy IPO Initial Public Offering SEC 128

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? Many startups these days are first-time entrepreneurs. This answer.

Equity 40

Equity Employee Founder Cofounder 40

A Smart Bear: Startups and Marketing for Geeks

JULY 7, 2016

The result is a framework to help decide whether a startup is viable. Another good answer is previous success by the team at startups, or at executing complex projects together. Why is “right now” the best time to create this startup? Why should you build this startup in your current location? Who → Why you?

San Francisco 170

San Francisco Startup Framework Azure 170

Up and Running

OCTOBER 13, 2022

Employee retention, for both startups and established businesses, is more important than ever. More and more employees are leaving roles to join companies that offer greater flexibility, increased benefits, higher pay, or even a more mission-driven culture. Federal income tax-free earnings until employees take distributions.

Vesting 88

Vesting Stock Valuation Stock Options 88

Reid Hoffman

DECEMBER 10, 2020

And if the reference checks come back positively, then if I believe at startup is a good opportunity, I can lean in right away. However, this course of action would have cost the company something even more important–the trust of its guests and hosts. The company also complemented this financial support with emotional support.

Hosting 69

Hosting Hockey Stick IPO Silicon Valley 69

www.paulgraham.com

APRIL 28, 2010

Want to start a startup? A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. Few startups get it quite right. 1 ] A startups life will be more complicated, legally, if any of theinvestors arent accredited.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Scalable Startup

AUGUST 9, 2018

I get approached often by tech startups looking for their first outside funding. This article is based on my experiences and the typical mistakes I see every week in startup land. High growth startup companies need seed money to get things going. Without funding most tech startups will die. high growth. Capital = Growth.

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

Startup Professionals Musings

AUGUST 7, 2016

Despite the fact that the number of IPOs (Initial Public Offerings) for startups have continued to decrease, I still hear it touted often as the preferred exit strategy. There are real ongoing costs of maintaining a public company. million in annual recurring costs as a result of being public. Analysts want escalating profits.

IPO 120

IPO Initial Public Offering SEC Stock Options 120

Gust

JULY 23, 2012

Donations of private stock enable investors, founders and employees to support charitable causes and contribute to the community while receiving simultaneous benefits in the form of substantial cash savings from reduced taxes as well as bypassing capital gains taxes. These assets often have a relatively low cost basis (e.g.

Stock 114

Stock Capital Gains Warrant Stock Options 114

Both Sides of the Table

SEPTEMBER 18, 2014

Less than you’ll probably grant your most junior employees in stock options? There are a million ways to do quick, easy, low-cost rounds with prices. Stock Option plans. They already locked in stock at a lower price. Startup Lessons' Him: Not so good. Obviously he’d be pissed off.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417