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 vs. Early Employees To help with this discussion, let me start with a definition of "early employee."

New Early Stage Financing Options for Entrepreneurs

Startup Professionals Musings

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. The good news is that he is all about helping early-stage startups. Early-stage startup.

Trending Sources

An Early-Stage Founder’s Quick & Dirty Guide To Growth

OnStartups

William is the Founder of Startup Slingshot , the resource for battle-tested startup strategies. Growth is what founders and investors alike are constantly searching for. Unfortunately for most founders, viewing their startup from this altitude isn’t extremely actionable.

New Early Stage Financing Options for Entrepreneurs

Gust

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. The good news is that he is all about helping early-stage startups. Early-stage startup.

Early-stage Regional Venture Funds–part 2 of 3 of Bigger in Bend

Steve Blank

Part 2: Early-stage Regional Venture Funds. as a distribution channel have vastly reduced the amount of capital a startup needs at the early stage when the risk is greatest. What’s Missing Is Early Stage Capital. Regions are missing early-stage capital.

The 4 Partners Early-Stage Startups Need

Early Growth Financial Services

Equally important, is an area many startup founders don’t always prioritize: choosing the right service providers and understanding the value they can bring, especially to an early-stage startup. Here are three of the most common: When … read more > Early Stages Startup Business I often write about the best strategies for startup fundraising or how to manage startup financing and optimize for growth.

Primer On Funding Trends for Early-Stage Startups

Startup Professionals Musings

If you are new to the entrepreneurial world of startups, you are likely confused by the terminology of seed-stage, lean startups, micro-VCs, and Super Angels. Seed-stage means promising companies that don’t yet have a revenue stream, and may not yet have a proof of concept.

UT at Austin Professors Present Early-Stage Pharmaceutical Startups

SiliconHills

By LAURA LOREK Founder of Silicon Hills News The StARTup Studio put on by the Innovation Center at the University of Texas at Austin had a decidedly pharmaceutical focus during its January presentations. Three professor-led startups presented a variety of ideas including a traumatic brain injury treatment drug, a peptide sequencing platform to combat bacteria […] The post UT at Austin Professors Present Early-Stage Pharmaceutical Startups appeared first on SiliconHills.

Early stage startups should have a financial model

The Equity Kicker

I met recently with an early investor in Deliveroo, a current darling of the UK tech scene, who cited their financial model as one of the things that made her invest.

The two reasons early stage investors should be active investors

The Equity Kicker

Transparency provided by the internet makes this true at all stages, but it’s especially true at the earliest stages where capital requirements have declined precipitously.

Great Early Stage Startup Behaviors Limit Scaling

Startup Professionals Musings

Once you are able to achieve some real “traction” with your business (paying customers, revenue stream), it may seem the time to relax a bit, but in fact this is the point where many founders start to flounder. Trusting your gut at this stage isn’t good enough.

The State Of The Early Stage Financing Market

A VC : Venture Capital and Technology

But I did read an interesting post by Semil Shah where he outlines what he thinks is going on in the early stage financing markets right now. He starts with this observation: Young founders are incredibly influenced by the online brands of certain investors. I am headed out on a bike ride with my daughter this morning and don't have a lot to say today.

Splitting vs. Expanding the Pie: Thoughts on the New Early-Stage VCs in Boston

Rob Go

Recently, I’ve been spending a fair bit of time with a number of the new early-stage investors in Boston. As more early-stage investors emerge in Boston, some folks have asked me whether I feel any discomfort around the many new “competitors” on the scene.

Early Stage Marketplace Investing

Dshen

One of our Launch Capital staff, Ed Coady, pinged me the other day regarding marketplaces and asked me how does one find the next big marketplace startup at the seed stage. In stark contrast, there are practically no posts written on how to evaluate and pick the next big marketplace at early stage when there is no traction. Lack of speed is death to the early stage startup! Generally for today's early stage marketplaces, I like to see margins be 25% or greater.

Why Early-Stage VCs Should Be Careful About Intros from Bankers

Both Sides of the Table

What stage? Should I trust my instincts for founders and products or should I be more focused on the market size or business plan? I sorted out pretty early that lawyers were a great source of deal flow. We are judging how well you are coached on stage.

The evolution of early stage investing in the UK

The Equity Kicker

We see this all the time at Forward Partners where we invest right from the idea stage and most of the companies get a first version of their product live for less than £30k (that generally includes founder salaries and time spent doing customer research).

7 Seed-Stage Funding Sources To Finance Your Startup

Startup Professionals Musings

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Asking for early-stage money before you have customers and revenue will likely kill your credibility with real investors.

Ecosystem for success: the key ingredients to attract an early-stage investor

The Startup Magazine

Starting out with a clear strategy, vision and mission, will not only make your product more focused; it will also demonstrate competence to an early stage investor by showing that you are willing to do your homework. . Only one in ten startups succeed.

Careful about equity and options in early stage businesses

Berkonomics

Equity is divided between the founders and the business begun. To protect against this, there must be some document in place from the beginning that clearly states the expectation of each founder as to contribution of time and resources to the enterprise. Close.

The Top 10 Sources of Early-Stage Money

Inc Startups

These investors are the most active financiers of early-stage startups. Now for the question that''s probably on the mind of every young founder: Where can you get seed funding for your great startup idea?

(First Annual?) List of Go-To Early-Stage Service Providers in the NextView Ventures Boston Portfolio

Genuine VC

Recently, we surveyed our Boston-based NextView portfolio Founder/CEOs asking them about which service provider firms they’ve been using. Although these startups are very diverse businesses themselves, they face similar requirements (especially in that they’re currently all in the seed to Series B range of company stage). When we took the poll itself, one founder said: “This is a great idea.

The 7 (mostly free) tools Product Hunt used to build its early-stage community

The Next Web

As Product Hunts first hire, I work with our founder Ryan Hoover oncommunity, marketing, business development, and all the other random things that people at early-stage startups do. Erik Torenberg is Product Hunts first hire.

The Marketing Section For Early-Stage Investments

Recent Buzzes - VC Experts, Inc.

The marketing section is the most troublesome for many founders to write convincingly and should, in view of the significance venture investors pay to the issue, be the most carefully drafted. It is relatively easy to obtain industry statistics and divide by some number. For example

Zachary Bogue And Matt Ocko Launch Data Collective, An Early Stage Fund For Big Data Startups

techcrunch.com

Zachary Bogue And Matt Ocko Launch Data Collective, An Early Stage Fund For Big Data Startups. Founders Den co-founder and angel investor Zachary Bogue has joined forces with seasoned big data VC Matt Ocko , Metamarkets founder Michael Driscoll and Prismatic CEO Bradford Cross to launch Data Collective , the world’s first Big Data-only early stage investment fund. Startups. Mobile. Gadgets. Europe. Video. Enterprise. Venture. Social.

Does Crowdfunding Work for Early Stage Growth Companies?

VC Deal Lawyer

Although the average dollar amounts raised aren’t very high, they still might be sufficient enough to put towards some market research, early concept exploration, product samples and the like.

Connecting The Dots: Mergers Of Early-Stage Startups

OnStartups

Often times when I see two teams going after a very similar market opportunity I look at the founders and can easily envision a great combined team. The following is a guest post by Ken Smith.

5 Secrets to Staffing an Early Stage Start-Up

Inc Startups

Here are some things to keep in mind when assembling yours: Pick the right co-founder. "A A good co-founder is vital, especially since co-founder issues are the reason many early start-up crash and burn," Fertik says. Building the right team is crucial.

Business Development for Early Stage Startups

This is going to be BIG.

If you’re a non-technical founder, while your team is building and refining your product, you’ve got to figure out what to do with your time. struck in the early days where newspapers would put a little “Tag this article” widget at the end of every story, and in return, they’d get a feed of the keywords used to take the articles, which helped them on search and ad targeting.

Roundtable For Entrepreneurs: Business Schools And Early Stage Entrepreneurship

ReadWriteStart

Most business schools don't have much insight into what goes on in the pre-validation and validation stages of the business and fail to underscore a simple fact: you do not get financing unless you validate your business first. Sramana Mitra is the founder of the One Million by One Million (1M/1M) initiative, an educational, business development and incubation program that aims to help one million entrepreneurs globally to reach $1 million in revenue and beyond.

Early stage startups don’t need a perfect idea, they need a great thesis

The Equity Kicker

Investors are frequently asked what they look for in a good startup and most good ones answer “Great team, great product and great market” With early stage companies team is paramount because that’s just about all there is in the company. Later stage companies have the reverse situation. Josh Miller, co-founder of Branch has a good post up on Medium today which examines what we should look for in early stage companies in a bit more detail.

Paying Yourself is Not a Reason to Raise Early Stage Funding

Instigator Blog

Paying yourself isn’t a good enough reason to justify raising early stage funding. Here’s a fairly common scenario for startup founders: Two or three people decide to start a company. Founders at an early stage have to pay themselves below market value. Furthermore, if you get to the stage where belts need to be tightened, one of the first things you cut is your own salary. Tags: Startups founders fundraising raising capital

The Truth About Early Stage Pre-Money Valuations

Ask the Angels

I think there are three fundamental truths regarding the valuation of early stage businesses by potential investors: The first is that a pre-money valuation is ultimately an outcome of negotiation , rather than a mathematical calculation of discounted cash flow or any other metric of potential company performance. For an early stage investor, due diligence is undertaken to refine initial impressions of factors affecting investment risk and return. By Al Schneider.

How Much Founder Stock Should You Offer Co-Founders?

Startup Professionals Musings

Two heads are better than one, so the first task in many startups is finding a co-founder or two. Giving a co-founder a salary won’t get you the “fire in the belly” you want. The CTO of many technical startups was the original founder.

Stock 85

Vision versus Hallucination – Founders and Pivots

Steve Blank

A founder’s skill is knowing how to recognize new patterns and to pivot on a dime. I got to spend time inside his company while I was using their software to analyze early-stage ventures. What I saw reminded me of some of the best and worst things I did as a founder.

Raising Money Using Customer Development

Steve Blank

Unfortunately in early stage startups the drive for financing hijacks the corporate DNA and becomes the raison d’etre of the company. The goal of their startup in this stage becomes “getting funded.” What are Early Stage VC’s Really Asking?

Should founders get Stock Options?

StartupCFO

Founders often ask me whether they should be asking for stock options in their own company. There’s no one right way to think about founder incentive compensation, but here’s how I have approached it over the years. The Early Days. Early vs. Growth Stage Comp.

Stock 31

How to design a Board of Directors

Scalable Startup

There was an article recently in VentureBeat about how much control the startup CEO founder has over his/her board of directors. Unfortunately, this actually isn’t true in most cases, especially for first time founders, for many reasons. Many factors come into play in early board formation including the founder’s goals, investors, cofounders, early appointees, family, friends. Founder/CEO. at least one Co-Founder.

What Is a SAFE? A Closer Look at The Simple Agreement for Future Equity

Early Growth Financial Services

SAFEs usually appear around the seed stage of funding, as it gives founders the chance to raise funding without having to begin the process of setting a valuation or issuing convertible notes. Without the involvement of debt, there … Continue reading → Investment Capital: Equity / Debt / VC Funding Early Stages SAFE equity y combinator convertible debtConvertible debt is a staple in startup funding.

Tech Founder Wins at Early Stage

ithacaVC

At the early stages of a startup, the founding team is probably the most important variable of success. As a company matures, the concept of “founding team” is replaced by “management team”, which may and hopefully includes the founders. Focusing on the early stage, the founding team typically will have a tech oriented founder and a business oriented founder. Company XT has a tech founder and business founder.

International Early-Stage Startup Program In Spain

ArcticStartup

Eligible start-ups should be at an early stage and focusing on the Internet. According to Vladimir Vagin, Managing Director and co-founder, Spain also has a market for innovative projects, a well-developed infrastructure and a growing start-up ecosystem.