Startup Professionals Musings

APRIL 10, 2016

One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 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? They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee. Focus on the partner you would be working with.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Steve Blank

MARCH 16, 2016

VC’s raise money from their investors (limited partners like pension funds) and then spread their risk by investing in a number of startups (called a portfolio). BTW, Angel investors do not have limited partners, and often invest for reasons other than just for financial gain (e.g., Above all, don’t panic or demoralize your employees.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Private Equity 120

Startup Professionals Musings

MAY 8, 2022

Old co-workers or new friends with complementary skills usually make the best partners. The right motivated employees dilemma. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. The founder’s title and role dilemma. Later you need specialists and managers.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

YoungUpstarts

JULY 17, 2020

Are you paying money for SaaS services that are no longer relevant or can be taken on by employees? Support Your Employees. Maintaining employee morale is crucial at a time like this, especially when budgets and responsibilities are being reallocated and you may have to make significant staff cuts or changes.

Startup 287

Startup Wisconsin Stock Options Dividend 287

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

Startup Professionals Musings

FEBRUARY 7, 2020

There is no better way to feel the pressures and unknowns, as well as the excitement, of a startup than to work in one as an employee, and realize that the highs and lows are even greater for the founder. Founders stock and stock options are worth nothing for the first few years.

Silicon Valley 315

Silicon Valley Entrepreneur Stock Options Flash 315

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. they still aren’t profitable. Have you ever walked into a traditional freight brokerage before?

Early Stage 135

Early Stage Los Angeles Silicon Valley Cofounder 135

Feld Thoughts

OCTOBER 8, 2013

My partner Dave and I took the number, made a list of all employees, and figured out how much we were going to give each of them. Figure out an equation for converting the bonus amount (in current cash terms) to stock option awards. At Feld Technologies, we had a very simple bonus program. We did this on an accrual basis.

Stock Options 146

Stock Options Technical Review Leadership Equity 146

The Next Web

OCTOBER 8, 2015

employees, partners) are appropriately motivated to help you succeed. stock, options, warrants). Motivating Employees For employees, my rule of thumb is to set aside 10-20 percent of the company’s equity for the key members of the team. Usually this is fine, provided that important key parties (e.g.,

Equity 60

Equity Employee Warrant Stock Options 60

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. Is the revenue dependent on a concentrated set of distribution partners or platforms that put future revenue at risk? Two-f **g-billion!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Both Sides of the Table

MAY 2, 2015

And it turns out that employee reviews matter. Stock option top-ups after a few years are vital retention mechanisms. Didn’t have employees sign non-solicitation agreements? Didn’t have employees sign non-solicitation agreements? Yet being a buttoned up company requires all this. Shame on you.

Operations 150

Operations Metrics Early Stage Non-Compete 150

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. We set off to raise our money.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Startup Professionals Musings

AUGUST 10, 2019

Old co-workers or new friends with complementary skills usually make the best partners. The right motivated employees dilemma. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. The founder’s title and role dilemma. Later you need specialists and managers.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

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. Stock Option documentation.

LLC 168

LLC Startup Stock Options Cofounder 168

YoungUpstarts

JANUARY 6, 2020

It is daunting because he or she cannot do it alone but requires engaged employees, an aligned leadership team, and supportive investors and/or owners. Let us take the case of employees. It helps for everyone to have a financial stake in the company such as profit sharing, stock options, and stock participation plans.

Leadership 147

Leadership Switzerland Stock Options Stock 147

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. Early in my climb I was hyper-focused on title and pay, realizing later that good health was like a stock option that pays off later. Do they support flexible hours?

Switzerland 264

Switzerland Private Equity Stock Options Equity 264

Both Sides of the Table

MARCH 21, 2010

A “warrant&# is a right, but not an obligation for a company to buy stock in your company at a future date and at a pre-agreed price. Think of it as similar to an employee stock option. Let’s say you give a warrant to a channel partner to sell your product. How Should You Structure Them?

Warrant 298

Warrant Dilution Startup Stock Options 298

Startup Professionals Musings

NOVEMBER 30, 2014

Yet you should offer a reasonable monthly fee and/or some stock options to show you are serious about the position. If you are looking for someone to fill an operational gap, or to do product design, it’s usually more productive to look for a partner, employee, or consultant. Formalize the compensation.

Advisory Board 276

Advisory Board Startup Stock Options Stock 276

www.joelonsoftware.com

MARCH 24, 2010

Our biannual reviews are done internally by management; they are not intended as a way to give employees grades or gold stars. Teamwork skills are excellent at the project, company, and industry-partner levels. Benefits Benefits are given equally to all full-time employees. (We It might be 0 in fallow years.

Software Review 48

Software Review Stock Options Salary Technical Review 48

Both Sides of the Table

FEBRUARY 25, 2019

this requires a strong knowledge of market data, employee performance, company performance relative to market and available resources?—?cash cash & unallocated stock options) Should we raise capital, from whom, how much and at what price? I practice what I preach. kind of like a board for a VC firm).

LP 269

LP Startup Burn Rate Stock Options 269

Up and Running

SEPTEMBER 10, 2014

Stock Option. Self-employed people are permitted to stash away considerably more in their retirement accounts than employees and they are investing it anyway (usually in the stock market) so they may want to dedicate a portion of their portfolio to angel investments. Management Resumes and Organizational Chart.

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

Startup Company Lawyer

MARCH 12, 2009

C corps, LLCs, and S corps differ significantly in the areas of taxation, ownership, fundraising, governance and structure, and employee compensation. Any company that raises venture financing will need to be a C corp in order to issue preferred stock. Employee Compensation. such as incentive stock options.

LLC 61

LLC Stock Options Preferred Stock Stock 61

Startup Professionals Musings

DECEMBER 14, 2014

Old co-workers or new friends with complementary skills usually make the best partners. The right motivated employees dilemma. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. The Founder’s title and role dilemma. Later you need specialists and managers.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

Scalable Startup

AUGUST 9, 2018

There are so many Facebook/Google/Apple multi-millionaires who receive new stock options every quarter, often a few hundred thousand dollars every quarter, that feel they should put something back into the system, plus they like the idea of being an investor. They’re betting on you.

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

Startup Professionals Musings

JUNE 25, 2013

Yet you should offer a small monthly fee and/or some stock options to show you are serious about the position. If you are looking for someone to fill an operational gap, or to do product design, it’s usually more productive to look for a partner, employee, or consultant. Formalize the compensation.

Advisory Board 241

Advisory Board Entrepreneur Stock Options Stock 241

Transformify

NOVEMBER 30, 2019

Jana handles everything from strategic business formation to employee matters, stock options, partnership agreements, partner disputes, confidentiality agreements, buyouts, global trademark registration, commercial leases and all stages of startup funding, and corporate restructuring.

Intellectual Property 83

Intellectual Property Employee Software Review New York City 83

Startup Professionals Musings

AUGUST 19, 2017

Old co-workers or new friends with complementary skills usually make the best partners. The right motivated employees dilemma. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. The founder’s title and role dilemma. Later you need specialists and managers.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

www.thedailymuse.com

SEPTEMBER 18, 2012

You don’t want a senior partner preparing documents for an incorporation, nor do you want a third-year lawyer negotiating with a seasoned venture capitalist for you. It’s essential to make sure you take reasonable steps to control risk in your interactions with customers, suppliers, users, employees, and the general public. Each other.

Hiring 56

Hiring LLC Intellectual Property Private Equity 56

Startup Professionals Musings

MAY 25, 2012

Yet you should offer a small monthly fee and/or some stock options to show you are serious about the position. If you are looking for someone to fill an operational gap, or to do product design, it’s usually more productive to look for a partner, employee, or consultant. Formalize the compensation.

Advisory Board 233

Advisory Board Stock Options Startup Stock 233

Startup Professionals Musings

JULY 19, 2013

Old co-workers or new friends with complementary skills usually make the best partners. The right motivated employees dilemma. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. The Founder’s title and role dilemma. Later you need specialists and managers.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Gust

NOVEMBER 23, 2014

Yet you should offer a reasonable monthly fee and/or some stock options to show you are serious about the position. If you are looking for someone to fill an operational gap, or to do product design, it’s usually more productive to look for a partner, employee, or consultant. Formalize the compensation.

Advisory Board 185

Advisory Board Startup Stock Options Stock 185

VC Cafe

SEPTEMBER 16, 2021

She makes money for the platform that hosts her without receiving the legal and financial protections of employee status, or the stock options typically given to the platform’s engineers, designers, and managers. “What the creator economy promises, and what it actually does”, The New Yorker.

Startup 207

Startup Social Media Venture Capital Audio 207

Startup Professionals Musings

DECEMBER 21, 2010

Yet you should offer a small monthly fee and/or some stock options to show you are serious about the position. If you are looking for someone to fill an operational gap, or to do product design, it’s usually more productive to look for a partner, employee, or consultant. Formalize the compensation.

Advisory Board 229

Advisory Board Stock Options Stock Networking 229

Both Sides of the Table

NOVEMBER 4, 2009

Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. When I was CEO of my first company (where I admittedly F’d up everything before I figured it all out) we initially calculated for people how much there options were going to be worth some day.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

OnlyOnce

AUGUST 13, 2020

About 80 people out of 400+ employees at the company knew about it. We had to tell a huge number of employees “Uh sorry, just kidding. You know all those stock options that were just about to turn into cash? It’s probably worth buying the whole book just for that. Our all-hands meeting was scheduled. Then the call came.

Sales 48

Sales Stock Options Startup Stock 48