article thumbnail

10 Creativity Mistakes Jeopardize Long-Term Survival

Startup Professionals Musings

Typical incentives give percentages of quarterly revenues and contribution as rewards for success. An even better alternative could be stock options, linked to the long-term success of the company. Provide bonuses for volumes, not milestones. Always promote from within rather than seek fresh blood.

article thumbnail

10 Ways To Trample And Smother Business Innovation

Startup Professionals Musings

Typical incentives give percentages of quarterly revenues and contribution as rewards for success. An even better alternative could be stock options, linked to the long-term success of the company. Provide bonuses for volumes, not milestones. Always promote from within rather than seek fresh blood.

Insiders

Sign Up for our Newsletter

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

article thumbnail

10 Great Ways To Crush Creativity In Your Business

Startup Professionals Musings

Typical incentives give percentages of quarterly revenues and contribution as rewards for success. An even better alternative could be stock options, linked to the long-term success of the company. Provide bonuses for volumes, not milestones. Always promote from within rather than seek fresh blood.

article thumbnail

The Great Coding School Rollup of 2015

Feld Thoughts

Companies were being bought (and valued) at 10x forward revenue only to be valued at between 0.5x revenue several years later. We were bought for a more reasonable 1x revenue (and about 4x pre-tax income) when the value of the AmeriData stock, options, and cash we took out were factored in. Or the ASP rollup?

article thumbnail

Should Startups Care About Profitability?

Both Sides of the Table

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. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

article thumbnail

Venture Capital Q&A Session

Both Sides of the Table

People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?&#

article thumbnail

Why Every Startup Must Must Be “Weighed” Before Attracting External Investors

YoungUpstarts

Secondly, it needs to explain and convince its revenue potential. When others see this, it prompts them to buy options on that stock too and the stock price rises. A great example of the combined aims of both investors and options trading coming together can be seen in the tech industry.

Stock 166