Startup Professionals Musings

APRIL 10, 2016

One more key employee or one more investor will probably not turn the situation around. Every startup should have at least a couple of outside advisors who are not major investors or family members, anxious to talk to new investors and key new hires. Calculate employee stock option values and vesting times, as well as salary.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

APRIL 8, 2015

One more key employee or one more investor will probably not turn the situation around. Every startup should have at least a couple of outside advisors who are not major investors or family members, anxious to talk to new investors and key new hires. Calculate employee stock option values and vesting times, as well as salary.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

MARCH 21, 2016

The most effective and productive team members are positive, driven and want to be measured by results rather than hear work hours, perks or stock options. Teamwork inside the company and interacting with customers and partners outside the company are mandatory activities. Motivation and commitment to results.

Technical Review 120

Technical Review Stock Options Salary Hiring 120

Both Sides of the Table

JANUARY 21, 2010

Forget to get around to setting up that Employee Stock Option Plan and want to be able to give the early guys their options at a low strike price? I know he’s smart but you wouldn’t hire a Javascript developer to do your database design – would you? Focus on the partner you would be working with.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Both Sides of the Table

MAY 2, 2015

For a well-funded seed company I have controversially recommended hiring a great office manager that doubles as an administrative assistant. This happens because many CEOs are passionate, market-driven people who are constantly trying to launch new products, win contracts, get press, hire staff and woo VCs. HR & Legal.

Operations 150

Operations Metrics Early Stage Non-Compete 150

Berkonomics

NOVEMBER 23, 2023

and here is the usual early-stage trap… First, a brand-new enterprise is often formed from the efforts of several “partners”, each with an expertise valued by the others. First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. Here are some rules.

Equity 62

Equity Stock Options Vesting Early Stage 62

www.thedailymuse.com

SEPTEMBER 18, 2012

We’re Hiring. What Start-ups Should Know About Hiring a Lawyer. Hiring and working with a lawyer is often confusing and daunting, especially if you’ve never done it before. What should new entrepreneurs look for when hiring a lawyer? Hiring employees. Get Involved. Meet the Team. Job Search.

Hiring 56

Hiring LLC Intellectual Property Private Equity 56

Reid Hoffman

DECEMBER 10, 2020

If I’m going to find out that a set of founders lack integrity, don’t behave like partners, take on unacceptable risks that might harm their customers or society, or simply aren’t the kinds of people I want to spend a decade with, I want to know those facts before I start down the path of evaluating that investment. I think David’s wrong.”.

Hosting 69

Hosting Hockey Stick IPO Silicon Valley 69

The Startup Magazine

JUNE 1, 2023

There are startups out there that are valued at a billion dollars, but because of employee salaries, assets, etc. Now we’re no longer spending employee manpower on a service that wasn’t helping accelerate the right type of growth we need. Hire versatile players and lean into your team The SVB collapse reminded us that staffing matters.

Early Stage 108

Early Stage Los Angeles Silicon Valley Cofounder 108

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. If you don’t have a strong balance sheet and can’t hire more people that’s fine — but understand this may lead to slower growth. Two-f **g-billion!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Up and Running

JULY 2, 2014

Picking the right attorney in your startup is as important as picking the right business partner. My business partner and I made many mistakes in our first tech startup, and so many of them were the result of choosing a lawyer who was a terrible fit. My business partner and I were elated. Our attorney should have known.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Both Sides of the Table

DECEMBER 2, 2010

If you’re a pure startup and haven’t raised any money – you might change the life of every person you hire. I always encourage people to allocate a few extra stock options to those that join super early when your company is risky and they just believed in you. “Mark, I’m an Associate Partner.

Europe 352

Europe France San Francisco Chicago 352

www.drowningamerican.com

JUNE 22, 2012

Next → How we Hire for Sweat Equity (Part 2)… Posted on April 7, 2011 by Travis Biziorek. The first time we hired partners for Kibin was way back in late 2009. I’ve heard people say it’s impossible to hire good developers right now. I want to hire before I have the ability to pay anyone.

Sweat Equity 40

Sweat Equity Equity Hiring Technical Review 40

YoungUpstarts

OCTOBER 24, 2017

Hammer Out the Details Between Partners. You might draft a contract with subcontractors that shifts responsibility to the sub-contractor in case of a construction-related accident involving one of their employees. If you plan to hire employees, make sure that you have the appropriate documentation. Employee handbook.

LLC 168

LLC Startup Stock Options Cofounder 168

www.joelonsoftware.com

MARCH 24, 2010

When we decide to hire someone, the interviewers who were involved in the "hire" decision will sit down with the candidates resume and salary history and figure out what level they will start at. Our biannual reviews are done internally by management; they are not intended as a way to give employees grades or gold stars.

Software Review 48

Software Review Stock Options Salary Technical Review 48

YoungUpstarts

FEBRUARY 11, 2020

When I became a managing partner, aside from directing our strategy on where to invest, I also helped recruit board positions and management teams. Two of my most senior hires were top women who were the best for the job. And when you walk around, do employees look healthy and happy? So it’s more about a broad network.

Switzerland 264

Switzerland Private Equity Stock Options Equity 264

YoungUpstarts

JANUARY 4, 2019

Comprehensive and articulate, Netflix’s culture deck covered everything, from its history to its purpose; from its expectations for excellence to hiring and firing policies; and nearly every process and work function. Deloitte found that 94% of executives and 88% of employees believe it’s important to business success.

Stock Options 138

Stock Options Global Viral Employee 138

Berkonomics

SEPTEMBER 28, 2017

Here’s an example: First, a brand-new enterprise is often formed from the efforts of several “partners”, each with an expertise valued by the others. First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. There are some rules.

Early Stage 102

Early Stage Equity Stock Options Vesting 102

Up and Running

SEPTEMBER 10, 2014

Stock Option. If you are more of a technical person and not a business leader by nature, make sure your investor knows that you intend to hire a CEO to take your place as soon as reasonably possible. Management Resumes and Organizational Chart. Customer References. Personal References. But don’t ask for a non-disclosure.

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

Berkonomics

SEPTEMBER 13, 2010

Then along comes either money or contracts from strategic or financial investors or partners. The number of employees grows. Money from friends and family usually is offered in a casual manner with much less restriction than professional investors, so that a formal board is a logical step but not often created upon this event.

Covenant 59

Covenant Software Review Stock Options Vesting 59

Scalable Startup

AUGUST 9, 2018

They need the money to rent offices, hire staff, and establish their initial presence (website, incorporation, marketing). As we prepare for our first funding we are assembling a value chain from partners and vendors to clients. High growth startup companies need seed money to get things going. The last point above is important?

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

www.inc.com

SEPTEMBER 24, 2011

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 a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. "We Business Taxes.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

The Next Web

SEPTEMBER 6, 2013

Don’t let the idea of relocating employees scare you. I recommend partnering with a VC if possible, as it increases the exposure and quality of turnout for the event. The recruiting process shouldn’t simply be about putting up a job posting or hiring a recruiter. Make the benefits of startups and stock options very clear.

Silicon Valley 121

Silicon Valley Asia Engineer Stock Options 121

Ben's Blog

APRIL 28, 2010

When my partner Marc wrote his post describing our firm , the most controversial component of our investment strategy was our preference for founding CEOs. Andy Grove was Intel’s third employee (after the two cofounders Robert Noyce and Gordon E. “You’re just a rent-a-rapper, your rhymes are minute-maid. Thomas Watson, Sr.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

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

ReadWriteStart

JUNE 15, 2012

To learn more about how your startup can find, hire and keep the top talent and quality workers it needs to succeed, download this free ReadWriteWeb Report: The Talent Wars: Today’s Toughest Startup Challenge.). Share the Partner Feel With Equity. After all, your new partner will be a key decision maker toward that pivot.

Developer 130

Developer Equity Ruby Cofounder 130

OnlyOnce

DECEMBER 13, 2010

They are people who we have almost hired over the years (sometimes more than once), but never have, people who are in our industry and are friends of Return Path. Sometimes they are clients or partners, sometimes they aren’t. Sometimes they have a token stock option grant as advisors, sometimes they don’t.

Stock Options 67

Stock Options Stock Employee Hiring 67

Berkonomics

MAY 12, 2010

First you must create a stock option plan using your attorney, which must be registered in many states as a security offering. If there are 85,000 shares issued to the founders, then a plan calling for 15,000 shares in a pool reserved for future hires is appropriate, making the fully diluted shares 100,000. There are some rules.

Early Stage 85

Early Stage Equity Stock Options Vesting 85

Austin Startup

SEPTEMBER 19, 2017

In other cases, they may come from your channel partners or elsewhere. A strong advisor can walk you in the door to the same number of companies as 2–3 new sales hires. As founders, your job includes selling product to customers, stock to investors, and opportunity to employees. Never discount the power of a warm intro.

Advisory Board 48

Advisory Board Sweat Equity Marketing Vertical 48

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

How many employees would a medium-sized business have in your definition? Jason: If I’m managing my whole business with this tool, I don’t have 100 employees. you can’t have one employee because meetings are just too easy and you don’t really have them formally. You can’t have 5,000 employees.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

www.paulgraham.com

APRIL 28, 2010

The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Dont be misled by thisoptimism.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

infochachkie.com

SEPTEMBER 24, 2011

Basing a consultant’s compensation on the incremental revenue they generate is a great example of a deal that is on The Fringe (for other creative approaches to partnering, see Agreements on The Fringe). At the early stages of your company’s life, you cannot rely on disinterested, hired guns to define your company’s key tasks.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

venturehacks.com

OCTOBER 21, 2010

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS The Option Pool Shuffle by Nivi on April 10th, 2007 “Follow the money card!&# – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you. Solution: Use a hiring plan to size the option pool.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Ben's Blog

MARCH 17, 2011

a champ like Tyson, a captain like Kirk, no Employee of the Month ‘cause yo, I do work. Often when I meet with startups, the employees have no job titles. When your head of sales interviews for her next job, she won’t want to say that despite the fact that she ran a global sales force with hundreds of employees, her title was “Dude.”.

Employee 78

Employee Stock Options Engineer Management 78

Austin Startup

SEPTEMBER 9, 2018

And all of our employees receive these as well. the press, current and potential consultants, potential employees (to be clear, all current employees are in the arena with you), current and potential clients, current and potential partners, current and potential investors, etc. The spectators are made up of many people?—?the

Advisory Board 48

Advisory Board Balance Sheet Stock Options Email 48

Ben's Blog

APRIL 21, 2010

This guy has run huge organizations with thousands of employees. Six Months Later… Fast-forward six months and everyone in the company is wondering why the sales (or marketing or finance or product) guy who has produced nothing got such a monster stock option package. and “why did he get so many options?”.

Stock Options 78

Stock Options Restful Hiring Sales 78

techcrunch.com

OCTOBER 23, 2010

Inevitably, the excuses begin: I need to hire people to build the product. In Meebo’s case, for example, I was lucky enough to partner up with Elaine and Sandy. No looking for partnerships (who’s going to partner with you anyway?). Partner up? Like I said, forget everything else and just get your product out the door.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84