article thumbnail

The Right Way to Lay People Off

Ben's Blog

outcome with no recapitalization. During the first layoff at our company, I remember being forwarded an email exchange amongst a group of employees. Shortly after we sold Opsware to Hewlett-Packard, I had a conversation with the legendary venture capitalist Doug Leone of Sequoia Capital.

article thumbnail

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

philipsmith.typepad.com

a year burn rate and your equity is worthless due to numerous recapitalizations and bridge loans from investors then either you don't get it or I'm stupid to do it. Someone in my network forwarded an email to me from a recruiting firm that is quite active in the Valley. Name and email address are required. Invalid URL.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Startup Founder Agreements

blog.simeonov.com

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. Lawyers tell me that in many cases verbal agreements are enforceable, especially if someone did work based on the verbal agreement. It helps to communicate and set expectations clearly.

Founder 44
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. The company is acquired, recapitalized, or otherwise restructured and the advisors are no longer useful or desired. Subscribe Contact A poem: We read every email, but cant respond to most, or we wouldnt have time, to write a post. founders@venturehacks.com

article thumbnail

On the Road to Recap:

abovethecrowd.com

This severely heightens the risk of either running out of money or a complete recapitalization that wipes out previous shareholders (founder, employees, and investors alike). Any investor asked to follow a dirty offering will look at the complexity of the previous offering and likely opt out.

IPO 40
article thumbnail

The Entrepreneur Thesis

Both Sides of the Table

Have you subscribed yet to my feed on Feedburner or do you want it delivered by email ? I really believe that some firms have the strategy of edging out the entrepreneurs, bringing in a new management team, recapitalizing the company, minimizing the founders’ share and taking maximum ownership for the VCs. Closing text.