article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

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 are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. Same Value for Sweat Equity as Investment Dollars?

article thumbnail

Introducing the Cap Table and Hiring the CTO

Feld Thoughts

As Finance Fridays continues, we are introducing the concept of the Cap Table. This week they set out to create their cap table and hire a CTO. Equity is split 55% and 45%, but where is that officially recorded? Jane and Dick want to bring in their friend Praveena as CTO, but they don’t know how to structure the compensation.

Cap Table 133
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Honor Technology Closes $370 Million in Financing, Plans to Triple its Engineering and Product…

Austin Startup

Honor Technology, Inc. , the world’s largest senior care network and technology platform which recently acquired global home care provider Home Instead , today announced it has raised $70 million in Series E funding and $300 million in debt financing. For more information about Honor and its open positions, please visit [link].

article thumbnail

10 Partner Qualities to Test Before Sharing Equity

Startup Professionals Musings

The reason is that good attributes apply equally well to “external” partners, as they do to internal partners, like a co-founder or CTO. Look at the big picture first of development, finance, and marketing/sales. In this context, I’m broadening the definition of partner from co-founder to “business partner.” Passion for what they do.

Partner 258
article thumbnail

How to calculate the equity split between co-founders in a startup

The Next Web

There are a lot of variables to go into calculating a fair equity split a startup team. The calculation comes as follows: original 50/50 diluted down 20 percent to 40/40 for the financing, and then the one funding founder gets that 20 percent. To me, that is no different than financing the business.

Cofounder 136
article thumbnail

Pitch Deck Month: The “Where Are You Going?” Slide

View from Seed

Depending on the composition of the founding team, you might or might not have near-term holes in certain functions at the exec level – e.g. you’ll most likely need to bring on a CTO/VP of Engineering shortly after the seed round if you don’t have a technical co-founder. The post Pitch Deck Month: The “Where Are You Going?

article thumbnail

What does a CTO do?

www.lanceglasser.com

Finance and budgeting. Customer Equity. What does a CTO do? What does a CTO do? What does a CTO (Chief Technology Officer) do in a high-tech company? So what is the CTO job? First it is to ensure that the company has the best technology. This is where you should see the CTO.

CTO 40