Startup Professionals Musings

JANUARY 15, 2021

This is called stock dilution control. Limit board seats and manage member selection criteria. This allows the entrepreneur more influence in controlling dilution of his or her shares, investment terms and acquisition decisions. Minimize your own loss of ownership as major investors contribute. Marty Zwilling.

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Vesting Dilution Stock Founder Vesting 298

Both Sides of the Table

FEBRUARY 6, 2013

it’s the most expensive dilution you’ll ever face. But not anal if one founder who shares equity graciously with early employees who are treated as “co-founders” My idea startup team is heaving on tech personnel but also has strong product management. Have them manage their area. For the wrong reasons.

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Cofounder Early Stage Startup Silicon Valley 388

The Startup Magazine

MARCH 14, 2022

Profitably managing and owning businesses with all the inherent risks have always defined the Indian entrepreneurial spirit. 5) Managing the operations. The equity dilution at this nascent stage is on desirable terms; such investing can lead to profitable returns. And this has been the way of life here in India. 2) Seed funding.

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Technical Review Due Diligence India Startup 139

ithacaVC

OCTOBER 10, 2017

Here is the big problem with investors – they dilute the founders’ ownership in the company. Let’s cover some basics: It is impossible to issue stock to investors without existing shareholders (founders, employees and prior investors) being diluted. Is this actually a big problem?

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Dilution Stock Options Stock Valuation 53

SoCal CTO

SEPTEMBER 27, 2011

The reality is that an early employee in a pre-funded startup that eventually raises a few rounds of capital will be diluted significantly, is down the line in preference, and will likely be locked up for a while to harvest it. Manager or Junior Engineer 0.2 – 0.33 And that's assuming that it's a fairly positive outcome.

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Early Stage Equity CTO Hire Sweat Equity 391

YoungUpstarts

APRIL 19, 2012

When not approached carefully, growth can destroy value as it outstrips a company’s managerial capacity, processes, quality, and financial controls, or substantially dilutes customer value propositions. That is what I call the ‘gas pedal’ approach to managing growth. Instead of grow or die, be motivated by this motto: ‘Improve or die’.

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Dilution Virginia Management Washington 187

Both Sides of the Table

AUGUST 3, 2010

How much dilution should I take for it?&# My friend’s company was pre-revenue. Me: “Zero dilution. It meant that the management teams hadn’t figured out a product / market fit for their own businesses. bring in management who can take your company to the next level and you stay on the board with some control.

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Merger Technical Review Early Stage Dilution 276

Steve Blank

NOVEMBER 13, 2018

If you’re an early employee at a startup, one day you will wake up to find that what you worked on 24/7 for the last year is no longer the most important thing – you’re no longer the most important employee, and process, meetings, paperwork and managers and bosses have shown up. Manager of people and process? Special projects?

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Part-Time VPE Employee Cofounder Hiring 333

Startup Professionals Musings

MAY 11, 2011

Use existing team to find a new manager or peer. If you already have some technical people on board, like software developers, and need a new manager, you supply the candidates based on credentials, and let them do initial interviews and make recommendations. Outsource your technical requirements. Marty Zwilling.

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Technical Review Partner Entrepreneur Architecture 236

The Next Web

NOVEMBER 20, 2013

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. So, a fair split, would be closer to 60/40 in favor of the funding founder, when diluted for the cash. How do you manage your equity split in your company?

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Cofounder Equity Founder Seed Stage 136

This is going to be BIG.

JANUARY 18, 2024

Instead of getting hung up on what their better-funded competition was doing, they focused on executing on their near-term goals, then setting new ones, then executing on those, and so on and so on, all the way up to a billion-dollar acquisition with very little dilution taken along the way.

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.Net Cap Table Startup Technical Review 88

YoungUpstarts

JULY 31, 2019

Cunningham’s term was coined to identify a specific problem in the tech industry, but the fundamental concept is universal — Ben Horowitz, for example, took Cunningham’s concept and applied it to management structures. . They need to comply with laws, create back-end processes, and build prototypes — all of which cost money.

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Cofounder Burn Rate Technical Cofounder Seed Capital 118

View from Seed

DECEMBER 4, 2019

Most LPs are trying to manage some targeted asset allocation. And over time, if VC is performing well, the LP may actively manage up their allocation to venture. This data seems to line up with the narrative I’m hearing on the ground. . LP Constraints. This allows the LP to deploy more cash into whatever asset class they want.

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LP IRR Distribution Portfolio 256

Startup Professionals Musings

JANUARY 31, 2020

Ability to raise money, manage it, and think in financial terms. A great inventor is most often a lone technologist who doesn’t have the interest or skills for building and managing a team. In fact, they may fear team leadership as a burden, or a potential dilution of their ownership.

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Founder Intellectual Property Dilution Startup 312

Startup Professionals Musings

NOVEMBER 8, 2021

Growth entrepreneurs find that this fun world quickly changes to managing personnel problems, tuning organizational structures, and dealing with testy investors. Of course, that doesn’t dilute the owner’s equity, but it may well limit you to organic growth, versus international rollouts and acquisition options.

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Entrepreneur Equity Dilution LLC 371

Startup Professionals Musings

OCTOBER 9, 2021

A popular myth these days is that finishing college only dilutes your entrepreneurial instincts, and the best of the best, including Bill Gates, Steve Jobs and Mark Zuckerberg, dropped out early to hasten their success. I agree with Robert E. Practical business courses are better than an advanced degree or MBA. Get real experience early.

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Entrepreneur Chad Incubator Dilution 373

ithacaVC

SEPTEMBER 10, 2012

But here is one that I want to focus on in this post: “Can I ask for undiluted stock (non dilution clause)?” I am not even sure what “undiluted stock” is, but safe to say the person (I will call him Exec X) meant stock that his equity would not be dilutable in terms of ownership. Actually, I got many questions.

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Dilution Employee Cap Table Stock 53

Startup Professionals Musings

JULY 1, 2022

7% Product Manager,2 -.3% You should also assume that your percentage will go down through dilution as the company raises additional rounds, and offer sizes will go down as the company grows. CEO brought in to replace the founder, 5 - 10% CTO, CFO, VP of Marketing or Sales, 1.5 - 3% Chief Engineer or Architect, 1 - 1.5%

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Stock Options Advisory Board Stock Startup 343

Business Plan Blog

JANUARY 9, 2014

Fear of Dilution. Understand the difference between dilution and economic dilution, which occurs when the value of the business doesn’t change but the number of shares increases. During company formation, the management team needs a solid legal strategy and must be compliance. Neglecting The Legal Foundation.

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San Diego Dilution Technical Review Forecast 74

Transformify

MAY 22, 2023

Additionally, the proposal tackles the issue of algorithmic management, a prevalent practice across various forms of work. The proposed Directive aims to address this issue by ensuring accurate employment status determination, promoting transparency, and holding algorithmic management accountable.

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Algorithm Italy Spain France 40

Up and Running

JULY 1, 2020

Business owners and managers make optimistic assumptions about a project’s success when they are emotionally committed to an idea. For example, I was the Program Manager for a group of investment advisors at a financial institution that had banking branches in a rapidly growing region. Pausing to ensure profitability.

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Business Plan Forecast Operations Dilution 152

Both Sides of the Table

FEBRUARY 20, 2019

But gone are the days where VCs put dollars into companies and ask founders to step aside quickly so that the VC can install their favorite management team. For starters, the incoming CEO will demand between 4–6% of the company so shareholders will immediately face dilution. Can I really manage a 7-person board plus 2 board observers?

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Venture Capital Startup Angel Investor Finance 236

Both Sides of the Table

JANUARY 4, 2014

I think as a tech industry we have bred a culture that places more emphasis on product excellence than managing human behavior. Of course it makes no sense to have great people management and a crappy product. The company hadn’t performed well financially and need to make changes. We sat down the three of us.

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Founder Sacramento Cofounder Technical Review 340

Austin Startup

JULY 6, 2018

Re: cash, the more “unbundled” types of accelerators (less formalized, less equity) tend to not provide any cash upfront, but also typically “cost” less in equity, often just 1–2% of your fully diluted capitalization. Anti-Dilution. See: Startup Accelerator Anti-Dilution Provisions; The Fine Print.

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Startup Dilution Technical Review Equity 48

YoungUpstarts

SEPTEMBER 23, 2017

Raising capital when you’re running out of cash, is always easier said than done, as seldom does the investor feel positive about your management capabilities or the potential of your firm. Nonetheless, many entrepreneurs don’t do this because accepting ownership dilution when it isn’t necessary, is too painful.

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Cofounder Sweat Equity Equity Dilution 109

Berkonomics

FEBRUARY 1, 2024

The rule of thumb for an advisory board member is to expect a half to a full day each year on site, typically in a strategic planning meeting with numerous members of the staff, as well as some reasonable number of phone calls from senior members of management during the year. How about using the names for marketing, fundraising?

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Advisory Board Dilution Vesting Stock 62

Startup Professionals Musings

MAY 8, 2022

The downside is loss of control and financial dilution. Later you need specialists and managers. Should you start a company solo or find co-founders to help you? With one or more co-founders, you gain complementary skills, spread the workload and responsibilities, and reduce the risk. In my view, two heads are always better than one.

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Founder Hockey Stick Cofounder Liquidity Event 325

The Startup Magazine

JANUARY 12, 2024

It will close your doors if you don’t manage it carefully. It’s not just about having enough money; it’s about smart money management. The Brand Identity Balancing Act While chasing growth, there’s a risk of diluting what made your brand special in the first place. Staying true to your core values and brand identity is vital.

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Intellectual Property Dilution Security Government 111

Both Sides of the Table

FEBRUARY 19, 2019

While the management of a startup company deals with the day-to-day decision-making within the company (strategy, budgets, goals, tasks, compensation) ultimately the Board of Directors has the legal governing responsibilities for these things. In many cases management teams confuse the roles and responsibilities.

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Startup Dilution Government Stock Options 204

YoungUpstarts

MAY 9, 2017

1 Manage Team/Process Complexity. Lean helps organizations and the teams within them visualize, manage, and optimize processes to maximize value, improve speed, and eliminate anything blocking the flow of value to the customer. #3 3 Better Management of Changing Priorities. 5 Increased Team Productivity.

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Lean Agile Technical Review Dilution 109

Duct Tape Marketing

MAY 22, 2015

The Minimalist Guide To Managing Your Brand Reputation Online written by Guest Post read more at Small Business Marketing Blog from Duct Tape Marketing. Let me tell you, brand value is diluting. How to manage third-party reviews (off-site). Tip #3: Poach the influencers. Connect with him on Twitter and LinkedIn.

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Reputation Management Technical Review Syndicate 28

Ben's Blog

APRIL 1, 2011

By far the most difficult skill for me to learn as CEO was the ability to manage my own psychology. It’s like the fight club of management: The first rule of the CEO psychological meltdown is don’t talk about the psychological meltdown. No training as a manager, general manager or any other job actually prepares you to run a company.

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Management Cap Table Balance Sheet Bankruptcy 78

YoungUpstarts

MAY 6, 2019

by Arsalan Sajid, startup community manager at Cloudways. 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. You might have to hire more team members because your initial team will be struggling to manage all those customers.

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Startup Technical Cofounder Merger Early Stage 104

Berkonomics

JUNE 8, 2023

I have a good business friend, an experienced manager and teacher with a Harvard MBA, whose creativity and intelligence are admired by many. But he dilutes his effectiveness with wordy PowerPoint presentations.

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Dilution Management 71

Gust

OCTOBER 18, 2011

in the case of one investment round, no subsequent investment and therefore no dilution). Reflecting the premise that the higher the number of risk factors, then the higher the overall risk, this method forces investors to think about the various types of risks which a particular venture must manage in order to achieve a lucrative exit.

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Valuation Pre-Money Valuation Southern California Post-Money Valuation 174

The Startup Magazine

JULY 25, 2021

But existing shareholders are not happy with the company’s proposed plan to issue $500 million in new shares as it would only dilute its current float. You should focus on making your startup irresistible to investors without opting for a dilutive capital raise. Owning a business involves more than managing daily operations.

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Valuation Artificial Inteligence Dilution Marketing 158

ReadWriteStart

JUNE 1, 2020

Under this category, you have the angel investors who would invest their own money and Venture Capital or VC firms, who manage funds aimed towards specific startup sectors and stages. They say, “The market is so and so billion and if we manage to get 1% market share we will have a company worth x million.” Debt investors.

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Startup Elevator Pitch Entrepreneur Seed Stage 150