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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." I'll get to service providers in a later post. Which means n = (i - 1)/i.

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Why good people leave large tech companies

Steve Blank

After the director left, I must have looked pretty surprised as the CFO explained, “We have tens of thousands of employees, and at the rate we’re growing it’s almost impossible to keep up with our space needs in the Bay Area. This founder’s reality distortion field attracted a large number of employees who shared his vision.

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Have you heard the rule of the thirds?

Berkonomics

Few entrepreneurs can do it alone, with subordinate hired help and no expert management to share the burdens, skill sets, and efforts involved in growing the enterprise. So, co-management is the second group to share in the bounty upon a liquidity event. Two: Co-management. How much equity to early investors?

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How to Scale a Venture Capital (or Private Equity) Fund

David Teten

VC is a “get rich slow” business, because most VC Partners will not see a carry check for 5-10 years, after waiting for both liquidity events and for LPs to be paid first. – Hire more Partners. For a VC fund to be actively engaged in a large number of investments, it needs to hire more Partners to sit on more boards.

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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

VC’s have just changed the ~50-year old social contract with startup employees. For most startup employee’s startup stock options are now a bad deal. As Venture Capital emerged as an industry in the mid 1970’s, investors in venture-funded startups began to give stock options to all their employees. Here’s why.

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How to Fund Your Startup Without Losing Control

Up and Running

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. practice in mid-sized or large organizations and act more as employees than owners of the medical practice. Capital investments are like gasoline on a startup business’s metaphorical fire. Conclusion.

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The Rule of Thirds

Berkonomics

Few entrepreneurs can do it alone, with subordinate hired help and no expert management to share the burdens, skill sets and efforts involved in growing the enterprise. So co-management is the second group to share in the bounty upon a liquidity event. [Email readers, continue here.] Think of it as the rule of the thirds.