Startup Professionals Musings

MARCH 23, 2014

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”).

Stock 256

Stock Vesting Common Stock Founder Vesting 256

Startup Professionals Musings

JANUARY 22, 2013

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”).

Vesting 245

Vesting Common Stock Stock Founder Vesting 245

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. It is important to note that each grant to new or existing employees must be approved by the board before issue. Director level employees are typically granted ½%.

Equity 62

Equity Stock Options Vesting Early Stage 62

Both Sides of the Table

MAY 5, 2011

awards dinner on Thursday night I started reflected on what it would take to “change the trajectory&# for Seattle or for any regional market, really. Who’s going to help you with improving your marketing / positioning to become a clear platform category leader like Twilio? There’s you and your killer CTO co-founder.

Seattle 317

Seattle Silicon Valley Technical Review Los Angeles 317

Both Sides of the Table

FEBRUARY 10, 2011

Thomas and his partner lived off of credit cards, and used crappy data centers and open source software (LAMP). The #1 lesson learned: having a business partner (50/50) is just like a marriage (although Thomas has never been married). There are personal factors that come into play like real estate value, stock market activity, etc.

Angel Investor 302

Angel Investor Cofounder Southern California .Net 302

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

David Teten

DECEMBER 3, 2019

But in business, you want a lot of partners. In liquid markets, most of the calories expended on technology and analytics are focused on trade selection, or “ origination ”. In the private equity universe, most Partners have primary training as deal-makers, not as managers. 2) Market . 2) Market .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Gust

MARCH 16, 2014

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”).

Stock 175

Stock Vesting Common Stock Founder Vesting 175

www.instigatorblog.com

OCTOBER 23, 2010

Home About Contact My thoughts & lessons learned on startups, entrepreneurship, marketing and other stuff. 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. Those first employees will take 0.5-1%

Equity 41

Equity Employee Startup Vesting 41

David Teten

OCTOBER 1, 2015

intrapreneurs, e.g., the employee of GE who is tasked with launching a new business. I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. mentor VCs, e.g., most VCs. The discounts?

Software Developers 60

Software Developers Software Development Software Review Technical Cofounder 60

Startup Professionals Musings

AUGUST 10, 2019

The right time to jump is a function of favorable career, personal, and market circumstances. Old co-workers or new friends with complementary skills usually make the best partners. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right motivated employees dilemma.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Transformify

DECEMBER 22, 2019

I’ve seen lots of startup founders making the same mistake – spending all the funding they have on headcount and expensive and inefficient marketing campaigns. Affiliate marketing has been around for many years, yet not many startups take advantage of it. So, how to make affiliate marketing work for you?

Affiliate 91

Affiliate Revenue Churn Rate Programming 91

Startup Professionals Musings

OCTOBER 7, 2010

These shares are allocated and committed, but not really issued and owned (vested) until later. Typically, vesting in startups occurs monthly over 4 years, starting with the first 25% of such shares vesting only after the employee has remained with the company for at least 12 months (one year “cliff”). Vesting starts now.

Stock 214

Stock Vesting Common Stock Founder Vesting 214

David Teten

SEPTEMBER 2, 2017

It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. I thought it would be helpful to put together some notes on market norms and issues to consider in negotiating a partnership at an institutional investment firm. So assessing fit is critical. What should the firm do?

Private Equity 60

Private Equity Venture Capital Equity Partner 60

www.inc.com

SEPTEMBER 24, 2011

Sales & Marketing | Wednesdays. Employee Benefits. SALES & MARKETING. Online Marketing. Bringing Innovation to Market. 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 Newsletters.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Hunter Walker

JULY 2, 2022

As the Wall Street Journal reports maybe some of it is a byproduct of tight labor markets, “The rise in no-shows “could be just an expression of job seekers having a lot more confidence in their ability to find a job,” said Nick Bunker, an economist at the job-search platform Indeed.”. Involve Their Family/Partners.

Hiring 92

Hiring Vesting Early Stage Stock 92

Hunter Walker

OCTOBER 22, 2021

Show me the first 20 employees of a startup and I’ll tell you whether it’s going to be successful or not. If you’ve never worked alongside a stellar marketer I don’t expect you’ll know how to identify one, let alone attract them. Three Tips For Leaders Who Want To Up Their Recruiting Game. Who should I talk to instead?”

Hiring 146

Hiring Vesting Salary Naming 146

The Next Web

AUGUST 26, 2013

Both ways are great, I’ve tried both, but personally I wouldn’t try to start something again without partners. Stefan Tirtey, Partner at Doughty Hanson Ventures , created this document with Berlin early stage investors. 10-20% for employees. But never give away shares without vesting. 60-70% for founders.

Management 120

Management Cofounder Startup Bootstrapping 120

Both Sides of the Table

MARCH 10, 2013

It would be yet another distraction for this fledgling CEO and he felt he needed to focus on biz dev, sales, marketing and fund raising. It is my job to be a sparring partner for teams not the decision maker. He had vested 18 months or so. It might destabilize the team. It might affect fund raising. My response was NFW.

Vesting 344

Vesting Cofounder Salary Sales 344

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. Each grant to new or existing employees must be approved by the board before issue. In other words, you cannot create bargain options at below “market rates.”

Early Stage 102

Early Stage Equity Stock Options Vesting 102

Austin Startup

SEPTEMBER 19, 2017

For startup founders, it’s never too early to start thinking about putting together a target market advisory board. The target market advisory board should consist of 2–4 industry veterans who have connections to C-level execs and VPs in your target market. In other cases, they may come from your channel partners or elsewhere.

Advisory Board 48

Advisory Board Sweat Equity Marketing Vertical 48

David Teten

MARCH 12, 2012

Our portfolio company BetterWorks cites a report by The World Economic Forum: “Employees are eight times more likely to be engaged when wellness is a priority in the workplace.” A pedometer is a great motivator and if all your employees are wearing them it sets up healthy competition.”

Product 166

Product Portfolio Venture Capital Vesting 166

Startup Professionals Musings

DECEMBER 14, 2014

The right time to jump is a function of favorable career, personal, and market circumstances. Old co-workers or new friends with complementary skills usually make the best partners. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right motivated employees dilemma.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

Both Sides of the Table

MARCH 21, 2010

As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting. Think of it as similar to an employee stock option. Large companies can be strange sometimes. Should You Offer Them?

Warrant 298

Warrant Dilution Startup Stock Options 298

discuss.joelonsoftware.com

NOVEMBER 1, 2010

After 14 years of trying to do most of it myself, Im ready to build a team, and aggressively build market share in a niche that I believe my competitors have neglected. Right now, my business is just myself and a part-time employee who does support, testing, and product usability design. The gist: 1. You simply need to network.

Sweat Equity 40

Sweat Equity Equity Angel Investor Affiliate 40

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.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Startup Professionals Musings

AUGUST 19, 2017

The right time to jump is a function of favorable career, personal, and market circumstances. Old co-workers or new friends with complementary skills usually make the best partners. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right motivated employees dilemma.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

venturehacks.com

FEBRUARY 24, 2010

It’s more important than your product, market, and investors. The best sellers can sell to customers, partners, investors, and employees. Partner with someone who is irrationally ethical, or a rational believer that nice guys finish first. Build in founder vesting (a.k.a. There are bounds to rationality.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

Duct Tape Marketing

JANUARY 2, 2018

“Companies and employees who embrace the rapidly transforming digital landscape stand to achieve the greatest success,” says Mike Train, executive president, Emerson Automation Solutions. SUN has 154 employees and a 184,000 square foot facility. They have a vested interest in how well the company does,” he observes.

United States 29

United States Baltimore Engineer Software 29

Startup Professionals Musings

JULY 19, 2013

The right time to jump is a function of favorable career, personal, and market circumstances. Old co-workers or new friends with complementary skills usually make the best partners. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. The right motivated employees dilemma.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Small Business Force

JULY 26, 2013

Then she addressed her employees and thanked them (none were shareholders) and said, essentially, "now on to a new adventure. "I I happened to know that of the two dozen employees that were there, more than half had been there for more than five years, several for nearly ten. Good and loyal employees are what underpin success.

Employee 37

Employee Stock Options Vesting Stock 37

www.chubbybrain.com

SEPTEMBER 28, 2011

declined Microsoft’s offer (summer 2000) to be the first enterprise software company with a.NET product (a Microsoft employee came back from a follow-up meeting with Allen and said “He reminds me of a lot of CEOs of companies that we’ve worked with… that have gone bankrupt.”). Go vest yourself.

Software Review 79

Software Review Startup Technical Review Vesting 79

www.metamorphblog.com

OCTOBER 23, 2010

Doubtful we’d have access to such a rich employee pool any other way. Tiny, contracting market. works with the massive market that is YouTube. Outcome: last night a Biz Dev guy from Disney/ABC sent me an email asking about partnering with some of their online properties. Vest, young man. Need legal advice?

Founder 51

Founder Startup Cofounder Vesting 51

The Next Web

DECEMBER 14, 2013

Even if you only have one type of customer, I guarantee there are other people contributing to your success (such as referral partners). Google has always been on the forefront of developing markets. Google has been very successful in collecting usage data of every product it has put out to market. Constant Questioning.

Advertising 167

Advertising Vesting Search Lead Generation 167

www.chubbybrain.com

SEPTEMBER 28, 2011

Many companies that failed started during the recent financial crisis (and continues to suffer through), and some startups highlighted the larger market negativity as a reason for their ultimate demise. We were obviously wrong about Untitled Partners’ ability to grow through the subsequent downturn. #19 16 – Get outcompeted.

Cofounder 89

Cofounder Startup Technical Cofounder CTO Hire 89

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

NZ Entrepreneur

JULY 12, 2018

My own father had difficulties with partners in his business. Co-founder, or employee with an ESOP (Employee stock ownership Plan)? If it is the former, then they are just an employee – which is fine but make that distinction. Equity and Vesting. Confirm your free digital mag/s here: Marketing Online.

Cofounder 44

Cofounder Founder Vesting Cap Table 44