Up and Running

DECEMBER 1, 2015

At the time, Facebook wasn’t the goliath it is today and so, Choe was given a couple of options: he could have $60,000 in cash, or stock (equal to the equivalent amount of the cash back then). If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted.

Equity 60

Equity Employee Stock Options Vesting 60

Both Sides of the Table

FEBRUARY 20, 2019

One of the things that founders have the most angst about is whom they should have on their board and at what stage of the business. Why you should set up a board at the seed round of funding I know these days with SAFE documents and rolling convertible notes many founders prefer not to set up a board early on.

Venture Capital 236

Venture Capital Startup Angel Investor Silicon Valley 236

YoungUpstarts

MARCH 22, 2019

Without the resources to hire a full time bookkeeper and little understanding of how to get their heads above water, many of these small businesses will founder having struggled due to lack of cash flow and poorly managed accounts. Provide real-time stock and inventory levels. One-stop-shop” accounting software. Staff requirements.

Software Review 176

Software Review Due Diligence Startup Stock 176

Both Sides of the Table

MAY 27, 2013

He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. It consists of a highly intelligent and opinionated founder – Nick Halstead. It is really working.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Startup Professionals Musings

APRIL 11, 2021

Here are five of the most common examples: Failure to document a Founder agreement at the beginning. This oversight can lead to the so-called “forgotten Founder” problem. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Cost 363

Cost Non-Compete Accredited Investor Cofounder 363

VC Cafe

JANUARY 15, 2021

In fact, when applying for their first full-time job, pay continues to be the most important thing to Gen Z (54%), followed at a distance by working for a company that does meaningful work (32%) and employee benefits (30%), according to a Workforce Institute research. One of Robinhood’s ads (currently available only in the US).

Social Media 99

Social Media Media Technical Review Stock 99

YoungUpstarts

NOVEMBER 12, 2020

Companies that have managed to do this have a distinct advantage over those dependent on financing from external sources. A disaster of this size has forced many businesses to take stock of how they conduct their enterprises. Businesses have had to look for more creative means for funding their success.

Bankruptcy 165

Bankruptcy Startup Agile Technical Review 165

Feld Thoughts

SEPTEMBER 2, 2011

As Finance Fridays continues, we are introducing the concept of the Cap Table. The founders each have common shares that will vest over four years. The vesting schedule protects each of the co-founders in case one gets hit by a bus or decides to drop the project after a short period of time. Time to update the cap table.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

Feld Thoughts

OCTOBER 7, 2013

The picture to the left is of Ryan Martens, Rally’s founder and CTO, giving Josie Health, the CEO of The Community Foundation Serving Boulder County , a check for $676,000. He wanted to build a sense of corporate social responsibility into Rally from day one.

Community 182

Community Colorado Common Stock Equity 182

Both Sides of the Table

JULY 29, 2010

Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?&# I talked about the need to have a restricted stock plan for your earliest employees. The downside is that people need to buy their stock. This is minutes 8-11.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

www.avc.com

SEPTEMBER 22, 2011

Employee Equity: How Much? The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. To be clear, these are hires we are talking about, not co-founders. And the fourth bracket are employees who are not in key functions.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Both Sides of the Table

SEPTEMBER 6, 2010

Options are gravy - I lived through the first dot com era where we used stock options as a recruiting tool. We set our sites on our IPO price and then worked back to our current valuation and showed potential employees what we thought they could earn (with all legal caveats) if the company was successful. We give out stock options.

Stock Options 294

Stock Options Stock Valuation Liquidation Preference 294

www.seriesseed.com

DECEMBER 9, 2012

Series Seed Financing Documents Blog. Series Seed Financing Documents. Listed below are links to weblogs that reference Series Seed Financing Documents : 1 Reblog. Locks in rights, preferences and priviledges of the stock. This is all built into a typical founder stock purchase agreement. SeriesSeed.com.

Finance 40

Finance Term Sheet Vesting LLC 40

Up and Running

SEPTEMBER 19, 2017

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. Under that scenario, the same $500,000 is only worth a 10-ish percent stake in the business, and the founder can retain far more control in the entity.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Both Sides of the Table

MAY 2, 2015

Clearly the founders and senior executives of a company are the most valuable resources and their time should be maximized on the most valuable tasks. I watched Ophir Tanz achieve much in his early days at the Founder & CEO at GumGum, which has now become quite a large business. And it turns out that employee reviews matter.

Operations 150

Operations Metrics Early Stage Non-Compete 150

Both Sides of the Table

JULY 16, 2010

But VC is an “illiquid asset&# so funds didn’t disappear quickly - In 2000/01 the stock market quickly adjusted punishing investors in the NASDAQ and in individual public technology stocks. What accelerated this was the collapse of the public stock markets. Nobody understands this better than First Round Capital.

LP 311

LP Technical Review Early Stage Silicon Valley 311

YoungUpstarts

FEBRUARY 1, 2020

by Bryce Welker, founder of Crush The CPA Exam. You are sure to be happy when your business reaches a Series B financing round because it usually means your company has a higher valuation. That can affect your first-time audit in two main ways: with stock option expensing and 409A Valuations. Stock Option Expensing. .

CPA 165

CPA Stock Options Valuation Stock 165

Steve Blank

OCTOBER 24, 2017

Why do these founders get to stay around? Because the balance of power has dramatically shifted from investors to founders. VCs competing for unicorn investments have given founders control of the board. A pre-IPO board usually had two founders, two VCs and one “independent” member. Technology Cycles Measured in Years.

Founder 252

Founder Technical Review CTO Hire IPO 252

Berkonomics

NOVEMBER 1, 2018

Some companies, especially those financed by angel or VC investors, have good, formal stock option plans with properly priced options set to reward all employees and managers in the event of a corporate sale. Formal option plans for some. I found myself in such a situation upon a sale of my computer software company.

Stock Options 192

Stock Options Stock Distribution Programming 192

Duct Tape Marketing

NOVEMBER 16, 2023

Fortifying Profits: Strategies to Shield Your Business from Embezzlement written by John Jantsch read more at Duct Tape Marketing The Duct Tape Marketing Podcast with John Janstch In this episode of the Duct Tape Marketing Podcast, I interviewed Todd Rammler, president and founder of Michigan CFO Associates.

Michigan 73

Michigan CPA Small Business Hiring 73

OnlyOnce

JULY 30, 2020

If you’re a founder entrepreneur who has led your company for several years, the odds are you have a significant amount of emotional investment in your company, too. You’re also creating some chaos and uncertainty for all your employees. One of the most important questions you can ask yourself is, “Am I ready to let go?”

Cap Table 48

Cap Table Institutional Investors Startup Early Stage 48

YoungUpstarts

JULY 21, 2019

Make sure your employees and business still have the essentials. If you and your co-founder(s) are friends, why not work on your home instead? Collaboration programs make it easy to communicate with your employees and client online. Some websites offer free vector graphics, free icons, free stock photos, and more.

Software Review 191

Software Review Entrepreneur Cost Cofounder 191

Both Sides of the Table

SEPTEMBER 18, 2014

It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. Less than you’ll probably grant your most junior employees in stock options? There were no metrics.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

YFS Magazine

JULY 30, 2016

One of the toughest compensation-related questions that founders and executives face is that of granting stock to key employees, board members, advisors or consultants.

Stock 60

Stock Startup Employee Founder 60

Hunter Walker

AUGUST 24, 2014

When Google went public in August of 2004 one of the first things I did with my employee grants was sell enough to pay off my student loans. The vast majority of my future savings was (a) not vested yet and (b) tied to hope for future stock grants I’d earn. Did I work any less hard the next day because of my liquidity event?

Founder 109

Founder San Francisco Liquidity Event LP 109

The Next Web

AUGUST 12, 2013

Editor’s note: This is a guest post by Christian Reber, CEO and co-founder of Berlin-based 6Wunderkinder. Define how you want to motivate your employees every day to produce high-quality and industry-leading results. Many founders don’t deal well with people leaving, but I am probably one of the worst.

Cofounder 119

Cofounder CTO Hire Startup Europe 119

www.instigatorblog.com

OCTOBER 23, 2010

Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. His company had just closed an early round of funding and he wanted to cement the employee relationships. Those first employees will take 0.5-1%

Equity 41

Equity Employee Startup Vesting 41

Scott Edward Walker

NOVEMBER 22, 2015

Startups must ensure that none of the founders’ prior employers have any rights to the venture’s IP because a founder was working on the venture while previously employed. This is a particular concern if the startup is in the same space as a founder’s prior employer. Any IP created or acquired by a founder (e.g.,

IP 40

IP Software Review Due Diligence Intellectual Property 40

Startup Company Lawyer

MAY 4, 2009

Adeo Ressi , the founding member of TheFunded , recently announced the establishment of TheFunded Founder Institute. The Founder Institute helps founders launch innovative companies by providing training, services, and company-building assignments, such as incorporating the business, filing provision patents, and setting up books and records.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

www.entrepreneur.com

SEPTEMBER 22, 2011

Entrepreneur Homepage Startups Starting a Business Home How-To Guides Startup Basics Business Ideas Business Planning Startup Financing Success Stories Home-Based Business Starting a Business Play Video How to Take a New Product from Just an Idea to a Business (Video). Financing Some Jobs Act Proposals Make Headway. July 31, 2007 |.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

A Smart Bear: Startups and Marketing for Geeks

DECEMBER 21, 2009

Okay okay, "Planning == Bad," but the supposed benefits of planning are still important: designing for profitability, understanding your customers and competitors, focusing your attention, deciding what's worth doing next, changing directions, and ensuring the founders agree on important issues. Cartoon by Andertoons. Or switch off.

Startup 315

Startup Revenue Cofounder Sales 315

David Teten

MARCH 14, 2018

Managers of VC funds typically want to grow their business aggressively, just like the founders we back. Among the sites we have found most helpful with practical guides for founders: Biztree , First Search , Foundersuite , Goodwin Founders Workbench , Guides.co , Inc.com , and StartupRocket. .

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

The Startup Magazine

JUNE 1, 2023

By Daniel Sokolovksy, Co-Founder and CEO, WARP and Troy Lester, Co-Founder and CRO, WARP The dissolution of Silicon Valley Bank (SVB) was more than just a bank collapse, it was a reality check for both startups and the VCs that fund them. As a founder, ask yourself – does your business actually warrant VC funding?

Early Stage 108

Early Stage Los Angeles Silicon Valley Cofounder 108

www.inc.com

SEPTEMBER 24, 2011

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Employee Benefits. Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We Start-up | Mondays.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Steve Blank

MARCH 31, 2014

Cheered on by finance professors, Wall Street analysts, investors and hedge funds, companies have learned how to make metrics like Internal Rate of Return look great by one; outsourcing everything, two, getting assets off their balance sheet, and three only investing in things that pay off fast. This is the kind most of us are familiar with.

Private Equity 326

Private Equity Metrics China Intellectual Property 326

keen.io

FEBRUARY 5, 2013

For example: Don’t accept equity compensation (stock shares) without knowing the percentage of the company you’ll own. The founders had been dropping hints that they wanted me to join them. To begin answering this question, I started on a quest to understand startup financing. Startup Equity for Early Employees.

Salary 50

Salary Equity Startup San Francisco 50

YoungUpstarts

JUNE 9, 2019

Too often, CEOs and founders find themselves behind the wheel of a company whose culture is no longer serving its people. Ultimately, they seek a way of operating that encourages all employees to bring their gifts and passions to the table for the betterment of the workers and the bottom line.

Leadership 185

Leadership Employee Operations Stock 185