Equity for Early Employees in Early Stage Startups


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."

Do My Early Stage Investors Own Too Much Of The Company?

Ask The VC

More Context: I recently joined a very early stage company as their CEO. Most VCs in India say we are too early stage for them and we have just started looking at angel investment as an option. If they are, then the hired CEO and COO getting 10% equity each is probably not unreasonable given that the founders are separate from the investors. There are definitely cases where the early investors own too much of the company to make it fundable.

The Importance of Proprietary Deal Flow in Early-Stage VC

Both Sides of the Table

What stage? I sorted out pretty early that lawyers were a great source of deal flow. Because entrepreneurs often went to lawyers at their earliest stages to get their company registration done. We are judging how well you are coached on stage.

Extremely Valuable Tips for Creating a Financial Forecast During the Early Stages of an Entrepreneurial Journey

Up and Running

The early days of a startup can be intense. Clearly, hiring new team members is an expense, and running promotions means increased marketing expenses, and depending on the nature of the special, selling products at a reduced rate. Working on a startup can be exciting, exhilarating, fulfilling and maybe even a little terrifying. Creating financial forecasts and budgets are not typically how many entrepreneurs envision spending their time, but these tools are incredibly necessary.

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. Most of the best funds are embracing this trend and hiring dedicated teams so they can add more value.

Thoughts on quant approaches to early stage investing

The Equity Kicker

Techcrunch and VCs have been writing about it, VC funds have been hiring data scientists , and Kleiner Perkins has taken the step of branding its proprietary data mining tool as Dragnet. ‘Quant VC’ is a hot topic at the moment.

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

The Next Web

Erik Torenberg is Product Hunts first hire. 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.

5 Recruitment Tips For Early-Stage Startups

Inc Startups

When it comes to hiring the best engineers, competition is fierce. Here''s what you should do to attract their attention

Careful about equity and options in early stage businesses


And then there are options: [Email readers, continue here…] Stock options or phantom stock are the tools of early stage businesses used to attract great talent when there is not enough cash to pay market rates. Close. This post is longer than usual.

Should Early Stage Startups Move to Austin because of Customers?

Austin Startup

It follows up on my posts discussing why early stage startups should — or should not — move to Silicon Valley. Should Early Stage Startups Move to Austin because of Customers? Silicon Valley is known for early adopters among both consumer and enterprise customers.

Should Early Stage Startups Move to Austin because of Competencies?

Austin Startup

It follows up on my posts discussing why early stage startups should — or should not — move to Silicon Valley. Should Early Stage Startups Move to Austin because of Competencies? Eventually the company should graduate to hiring senior expertise across these functions.

5 Early-Stage Investments You Need to Make

Inc Startups

He showed us, too--cutting our hair in the kitchen, growing fruits and vegetables, and never hiring anyone to clean our house or yard. Hire help. Hire the best employees, not the cheapest ones.

5 Secrets to Staffing an Early Stage Start-Up

Inc Startups

A good co-founder is vital, especially since co-founder issues are the reason many early start-up crash and burn," Fertik says. To survive the "make it or break it" stage of launching a start-up, find someone who will work through the tough times. Hire a forecaster.

Are True Early Stage Investors an Endangered Species?

VC Deal Lawyer

I think we can all agree that early stage investing has changed significantly over the past 10 years and I don’t see it reversing any time soon. And by “changed significantly&# I mean it is increasingly difficult to raise the $100K – $2M necessary to move from the pre-seed stage (where you likely raised $10-$100K from friends and family or your 401(k)) to raising institutional venture capital (~$2M +). Having angels invest at such an early stage was crucial.

3 useful tips to help your early stage startup acquire paying enterprise customers

The Next Web

As a B2B company, I am personally excited about this, but I am here to tell my fellow early-stage (seed-funded or unfunded) enterprise startup entrepreneurs that acquiring enterprise customers is no joke.

What VCs look for in an early stage company

A Crowded Space

By this, I really just mean what I look for in entrepreneurs and companies at early stages. But more important than that is the key job of a CEO is to hire great people. Anytime I see an early stage startup that already has multiple products and lots of features it’s almost always a pass. · Big, articulate vision – I think one of the most noticeable differences between As and Bs is the ability to clearly articulate a big vision.

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


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. GreenTech. Gaming. Opinion.

"This is a ridiculously early stage for a company,” Mr. Parker said in an interview on Monday at his."

Mark Birch

““This is a ridiculously early stage for a company,” Mr. Parker said in an interview on Monday at his town house in New York. “It Maybe they can hire themselves some growth hackers to figure it out…. It takes six to 12 months to get things up and running.”” - “ Airtime, a Pedigreed Start-Up, Is Tested ” via The New York Times. LOL, only six to twelve months to get things going. startups tech growth hackers Airtime

Early Stage Investments For Politicians


I've come across quite a few candidates and politicians who don't fully understand the importance of early stage investments, call it angel investing or whatever you will, for the startup ecosystem and the economy itself.

How Do Startups Find Early Hires?

Ask The VC

Hiring 100

13 Ways to Ensure You Always Hire the Right Person

Up and Running

Here at Palo Alto Software , we take hiring pretty seriously. I should know—we just wrapped up a lengthy hiring process within the marketing department. To that end, I reached out to the Young Entrepreneur Council , to ask for their advice on how to avoid hiring the wrong person.

Hiring 100

Setting And Shaping A Strong Startup Culture

Seed Stage Capital

with perhaps 700-800 early stage startups. Culture of "Launch Early, Launch Often" One of the most dispiriting experiences is when a company never actually gets to market; or, by the time the company finally does launch, the market has passed them by and their product is irrelevant.

The Care and Feeding of Startup Advisory Boards

Seed Stage Capital

This is an often-overlooked, under-utilized, or completely neglected strategy for early stage companies. Ideally, they tap their network and provide leads for funding sources, early customers or partners, and key hires.

Acquisition As An Exit Alternative | VentureArchetypes Blog: Seed.

Seed Stage Capital

Fundraising? Be a Buyer, not a Seller


Most founders raise (or try to) far too early. Here’s the thing: At the early stage there’s tons of demand for capital and fewer sources. At the late stage ($10M+ revenue) the reverse is true. acqui-hiring yourself away), then settle in for the long haul.

the best funding strategy of them all: none

Seed Stage Capital

skip to main | skip to sidebar 18 May 2009 The Best Funding Strategy Of Them All: None This blog is generally about all things early stage capital related, but here is a good list of the best strategy of them all: bootstrapping.

Hiring Developers Before Product/Market Fit?


Using my StartupRoar as a radar, I came across a great post by Gabriel Weinberg Do you really need a full-time hire for that? Hiring seems to be the preferred use of seed funds (by investors and founders), whereas I'd prefer a focus on customer acquisition. They are very early.

Why “Job Boards” and applying online do not work

Scalable Startup

Remember, job boards and online hiring were invented almost 20 years ago and popularized by Monster. Many article point out that networking and referrals are the most effective ways to get hired, and I tend to agree. There is also a lot of campaigning – with a weak economy and ineffective government help people want to help others that they know to get hired and survive all this. Many under-qualified get hired every day over better candidates.

How to Hire Your First Employee

Up and Running

Before you get there, however, you have to actually complete the interviewing, hiring, and onboarding process. Their responses ranged from practical tips on hiring to what to look for in a first employee. See Also: Is It Time to Hire an Employee? Hire for your weaknesses.

How to Hire Your Dream Employee

The Startup Magazine

Anthony Hynes, CEO of corporate payment company eNett International has gone as far as advising employers to prioritize hiring for culture more than skills. The post How to Hire Your Dream Employee appeared first on The Startup Magazine.

HighScore House is Hiring

Instigator Blog

One of the most important thing right now for HighScore House is hiring. It’s a great opportunity to join a very early stage startup (but one that has traction, data, support and funding.) HighScore House is a Year One Labs portfolio company.

Hiring 130

4 Tricks For Hiring Talent

Inc Startups

Hiring talent in the early stages of your company is crucial. Here's a guide to help

“Recommendation Swapping” on Linkedin

Scalable Startup

Details of the Recommendation: “During the early and critical stages of the conception and start up of One Fulfilling Life, Tom provided us with thoughtful, wise and nurturing insight and guidance. Year first hired: 2013.

What is Drupal? or, My retraining in Software Development

Scalable Startup

Angel Investor Business Development Hiring Jobs PHP SaaS Scalability startup startup CEO Tom Nora venture Android Drupal early stage first revenue leadership scalability Silicon Valley software Software Development tom nora Confessions of a Drupalvangelist. Anyone who’s been around me for the past 6-12 months has been inundated with my evangelism of eCommerce in general and Drupal + PHP.

Struggling to Build an Internal Software Team? Here Are 5 Easy Ways to Improve Your Tech Talent

Inc Startups

If you're an early stage company, building a technology team can be a real challenge. How to Hire the BestHere are five things you can do to make it easier.

An ongoing discussion on linkedin about Offshore Web Development and building a team in Europe.

Scalable Startup

Hire them 8 hours at a time and review daily by skype, g hangout. They keep you involved even from the early stages of the value chain including selecting the right engineers and taking direction and input on the future technical growth plan for those engineers. Its like hiring a resource once you hire a great resource you never need to worry about it. Jobs career early stage offshore Paris Software Development tom nora

The life of a Startup CEO – 3 full Time Jobs.

Scalable Startup

Managing and Properly Growing The Business – this includes several things, depending on the size of the enterprise: managing employees, administration, hiring, firing, leases, expenses, unhappy employees, fixing other problems, etc. CEO Succession early stage founder startup CEO angel investor CEO jobs startup venture capital This post has been one of my most popular on Quora.

Recruiting Passive Candidates: 3 Strategies to Get Your next Star Hire

Startup Life

If you’re a hiring manager in a startup you can agree with me when I say, It’s not easy to build a dream team with so many constraints. And 70-80% of those hires came from recruiting passive candidates. Building rapport is the goal in the early stage.

Equity is the currency of early stage businesses.


Equity is the currency of early stage businesses. The truth of this statement may be obvious, but the execution of a good incentive program using equity is often mismanaged, damaging the corporate capitalization structure and even affecting the outcome of subsequent investment into the company. First, a brand new enterprise is often formed from the efforts of several “partners”, each with an expertise valued by the others.

JSV is hiring.

A Crowded Space

—— Apply here: [link] —— Jackson Square Ventures is a focused, early-stage VC firm in San Francisco. We invest with very high conviction and take active roles with all of our portfolio companies. We are extremely selective and like to invest in “anti-hype” companies. We’ve been successful at it – over 14 years in venture, we’ve invested in 4 companies that have gone on to become unicorns with more coming soon.