article thumbnail

Silicon Valley Frontlines: Two Tales of "Working For Equity"

philipsmith.typepad.com

While there have been times in the last dozen or so years, usually during times of venture capital excess, that cash to founders, early-stage executives and other key employees has matched regular market compensation (still with the upside of the equity), this is not true in the vast majority in the start-up game. URLs automatically linked.).

article thumbnail

Everything you ever wanted to know about advisors: Part 2.

venturehacks.com

If you have more questions, email us at ask@venturehacks.com. Or they bring you a handful of great employees. They’ll bring you leads for customers, employees, and investors. The company is acquired, recapitalized, or otherwise restructured and the advisors are no longer useful or desired. See Part 1 for the rest.

Insiders

Sign Up for our Newsletter

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

article thumbnail

The Right Way to Lay People Off

Ben's Blog

outcome with no recapitalization. share, unlimited bad press and 3 separate layoffs where we lost a total 400 employees, he was most amazed by the layoffs. After seeing their friends laid off, employees were no longer willing to make the requisite sacrifices needed to build a company. Here’s how. Step 1: Get your head right.

article thumbnail

Startup Founder Agreements

blog.simeonov.com

This can be a convenient shortcut to separate someone’s status (founder) from their role (employee or contractor or advisor, etc.) An email would do. The only way to remove their equity holding in the cap table is by buying them out or through a recapitalization of the company. Which founder agreement?

Founder 44
article thumbnail

On the Road to Recap:

abovethecrowd.com

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. And there are also modern examples of investors beating the founders and employees out the door.

IPO 40