SoCal CTO

SEPTEMBER 27, 2011

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.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

David Teten

MARCH 14, 2018

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.

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

Up and Running

SEPTEMBER 19, 2017

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. That is to say, they’d want to be able to control costs and revenues at a high level.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Steve Blank

APRIL 10, 2019

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.

Stock Options 334

Stock Options Stock Vesting Common Stock 334

YoungUpstarts

MARCH 11, 2015

But it’s an important consideration, especially for companies that plan to offer alternative compensation such as employee stock options, which will usually require a 409A valuation. Startup companies are often cash poor and have little in the form of current monetary compensation to offer their employees.

Valuation 100

Valuation Stock Options CPA Merger 100

Gust

NOVEMBER 4, 2011

This discussion expands on my Quora answer to a specific question: “ Why were the stock options of MySpace employees worthless even though the company was sold to News Corporation for hundreds of millions? ” The complete story includes a startup-within-a-startup, investments and exits by two VC firms, and some genuine corporate drama.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

The Next Web

SEPTEMBER 29, 2013

They feel the money can and should be spent on ways to grow the company, so they shift into growth mode by hiring more employees, paying themselves, hiring salespeople, running paid ad campaigns, and spending on overhead. Why do teams do this? How do you do that? Put yourself in an investor’s shoes for a second.

Metrics 136

Metrics Cofounder Cram Down Liquidity Event 136