Remove Dilution Remove Employee Remove Hiring Remove IPO
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Four Major Startup Stages That You Should Know About

YoungUpstarts

By offering the advantages of your company, you will be able to find some great employees. If you are getting funded for the first time, which means that you have not diluted the shares of your company, you will be receiving Series A funding. Hiring more resources. So, hire more people or go for outsourcing to remote workers.

Startup 113
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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

VC’s have just changed the ~50-year old social contract with startup employees. For most startup employee’s startup stock options are now a bad deal. As Venture Capital emerged as an industry in the mid 1970’s, investors in venture-funded startups began to give stock options to all their employees. Here’s why.

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Should Startups Care About Profitability?

Both Sides of the Table

If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth.

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Sorry Startup Employee #100, Your Equity Probably Won’t Make You Rich

Hunter Walker

Bloomberg’s article about lower-than-expected financial gains from startup IPOs for midlevel employees stuck in craw this week because there’s a handful of complex issues at play here. You join at an executive level pre-IPO for a company that already has huge potential. Post IPO, You Have Choices: Hold or Sell.

Equity 48
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How Open Should a Startup CEO be with Staff?

Both Sides of the Table

A cautious person wouldn’t try to pry people out of Twitter right before their IPO to” join my cause!!” An employee walks up to me and says, “Mark, I’m thinking about buying a house. Most employees want cruising altitude, most founders live in take off mode. Dilution / valuation. ” Yes.

Startup 417
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The Entrepreneur's Guide to Customer Development

Startup Lessons Learned

I used to give copies of Four Steps out to my employees, in the hopes that it would instantly indoctrinate them into the methodology of Customer Development. Brant and Patrick undertook a difficult challenge: to provide a generally accessible introduction to Customer Development, without diluting its impact or dumbing-down its principles.

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Equity for Consultants – Keep it Simple!

www.mattbartus.com

We will grant him/her X% fully diluted shares up front, and every time he/she makes an introduction, he/she will vest in 100 shares.” People tend to underestimate how much record keeping is involved with managing employees and consultants, and this just adds an unacceptable extra burden. link] Casey Allen. Matt: Fantastic posts.

Equity 40