Up and Running

DECEMBER 1, 2015

If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Finding great employees first.

Equity 60

Equity Employee Stock Options Vesting 60

Startup Professionals Musings

JULY 1, 2022

Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. Thus, options don’t “pay the mortgage” today, so to speak. Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Startup Professionals Musings

MARCH 29, 2015

Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. Thus, options don’t “pay the mortgage” today, so to speak. business entrepreneur shares startup stock options' Marty Zwilling.

Stock Options 120

Stock Options Stock Advisory Board Startup 120

Both Sides of the Table

AUGUST 14, 2017

As a starting point the board is intended to have legal and financial responsibilities to a few key constituencies: shareholders, debt holders, creditors, employees, government and major parties with whom the business operates. ICOs certainly have a place in startup financing.

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

The Next Web

JUNE 15, 2012

From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. However, if you are thinking about compensating non-employees with equity, make sure to consider the following points: 1.

Equity 116

Equity Stock Options Vesting Stock 116

Up and Running

DECEMBER 16, 2021

Some reasons why include needing a more detailed picture of your company’s value, submitting taxes, outlining employee stock option plans, or presenting to investors or creditors. The following formulas are used to calculate the various aspects of the business valuation: Sales Multiples. Gross Profit Multiple.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

A Smart Bear: Startups and Marketing for Geeks

SEPTEMBER 29, 2015

The proper ambition for a tech entrepreneur should be to join the ranks of the great tech companies, or, at least, to create a profitable, independent company beloved by employees, customers, and shareholders. But what about the other employees? It is the nature of things to change; expecting otherwise is foolish.

Acquisition 120

Acquisition Technical Review Stock Options Employee 120

Women Entrepreneurs Can

FEBRUARY 8, 2023

Invest in Your Employees Investing in your employees is just as important as investing in technology or physical assets. Additionally, consider offering incentives such as bonuses or stock options to reward employee performance. All of these factors can help increase sales and grow your business.

Artificial Inteligence 52

Artificial Inteligence Guerilla Technical Review Stock Options 52

Berkonomics

NOVEMBER 1, 2018

Formal option plans for some. Some companies, especially those financed by angel or VC investors, have good, formal stock option plans with properly priced options set to reward all employees and managers in the event of a corporate sale. And a lack of plans for others. Consider the kinds of exits.

Stock Options 192

Stock Options Stock Distribution Programming 192

Startup Professionals Musings

SEPTEMBER 25, 2019

Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. Thus, options don’t “pay the mortgage” today, so to speak. Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3%

Equity 237

Equity Stock Options Advisory Board Stock 237

Berkonomics

OCTOBER 21, 2021

Should be overwhelm prospective employees with stock options and perks? But more difficult is the sticky issue of employee incentive compensation. This one seems non-negotiable for many non-production-line workers and offers savings for both the company and employee if properly implemented and supervised.

Employee 62

Employee Stock Options Salary Stock 62

Both Sides of the Table

MAY 27, 2013

He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. Growth like this, this early in a company’s lifecycle rarely happens. He is very pleasant when he calls and writes.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

Both Sides of the Table

APRIL 27, 2010

Moving on … My second post was directed at employees. If you’ve done it for a long time then I usually advise hiring managers to hire you as contractors and not full-time employees. No employees wanted to join startups – they were all looking for stable jobs. It’s a subjective topic.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Berkonomics

NOVEMBER 23, 2023

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if there is no interest, to outside investors. Pricing your options: The price per share for option grants is also an important consideration.

Equity 62

Equity Stock Options Vesting Early Stage 62

Steve Blank

MARCH 16, 2016

After awhile, you ought to be able to go to the whiteboard and diagram the acquisition decision process much like a sales process. Do you wait 7 years until you’ve built enough revenue for a billion-dollar sale? Typically, a VC can force a sale, or even block one. Above all, don’t panic or demoralize your employees.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Venture Capital 120

Startup Professionals Musings

SEPTEMBER 14, 2022

Most public shells ready for sale are not listed on a national securities exchange, but are instead traded in a less glamorous setting, such as the OTC Bulletin Board. These looming constraints can turn your startup dream into a nightmare, all to increase funding. Reverse mergers may not get your startup on the Nasdaq.

Merger 261

Merger OTC IPO Due Diligence 261

Startup Professionals Musings

MAY 8, 2022

The right motivated employees dilemma. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback.

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

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. The most obvious way to explain this is with sales people. COGS” represents the amount that each sale costs you. Two-f **g-billion!

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

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? Consider it a sales & marketing expense for them. They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Both Sides of the Table

MAY 2, 2015

It freed up Ophir to grow out our sales organization, to work more closely with agencies, to innovate on product and to raise capital. The last thing you want the CEO (or heads of sales, marketing, product) doing is sinking 3 days every month into preparing board packs. And it turns out that employee reviews matter.

Operations 150

Operations Metrics Early Stage Non-Compete 150

View from Seed

AUGUST 6, 2015

Of late, I’ve encountered numerous potential startup candidates and newly hired employees who have no idea what their equity means. It falls on the hiring company to thoroughly explain equity options to their new employees. What’s the strike price ($ value per) of the options I’m being granted?

Equity 120

Equity Employee Cap Table Stock Options 120

View from Seed

AUGUST 6, 2015

Of late, I’ve encountered numerous potential startup candidates and newly hired employees who have no idea what their equity means. It falls on the hiring company to thoroughly explain equity options to their new employees. What’s the strike price ($ value per) of the options I’m being granted?

Equity 120

Equity Employee Cap Table Stock Options 120

Startup Professionals Musings

DECEMBER 8, 2019

Most public shells ready for sale are not listed on a national securities exchange, but are instead traded in a less glamorous setting, such as the OTC Bulletin Board. These looming constraints can turn your startup dream into a nightmare, all to increase funding. Reverse mergers may not get your startup on the Nasdaq.

Merger 303

Merger OTC IPO Due Diligence 303

The Startup Magazine

JUNE 1, 2023

Be honest with yourself VCs are now going to be looking closer at margins, cost structures and true sales, and product market fit. There are startups out there that are valued at a billion dollars, but because of employee salaries, assets, etc. As a founder, ask yourself – does your business actually warrant VC funding?

Early Stage 112

Early Stage Los Angeles Silicon Valley Cofounder 112

Berkonomics

OCTOBER 26, 2010

Pay early stage board members of companies that are not lifestyle businesses one percent of the fully diluted equity in the form of an option that vests over four years of service. Inside board members, CEO and any other paid employees are not paid for board service in either stock options or cash.

Stock Options 66

Stock Options Early Stage Stock Vesting 66

Hunter Walker

MAY 1, 2022

Selective Leaks of Previous Discussions & Policy Debates In The Name of ‘Transparency’ Would Put Twitter Employees At Risk. Typing “I know this makes me sound like a crazy person but.” as a blog post opener is usually a good reason to close my browser window and take a walk. But hey, it’s 2022, let’s soldier onward….

Email 138

Email Stock Options Naming Stock 138

Up and Running

JANUARY 4, 2017

Employee taxes. This could look like changing the amount of ownership you’re willing to give to your investors, or establishing a way to deliver a faster return on their investment by increasing production, upping your products price point, or investing in a better sales team. Hiring the right employees. Travel expenses.

Small Business 122

Small Business Social Media Stock Options Employee 122

Up and Running

SEPTEMBER 10, 2014

I’m a mom, a full-time sales manager, and recruiter. Entrepreneurs need to find a way to get traction (sales) without funding. It’s because pitching is making a sale and all sales are made emotionally and followed up with logic. Wait, you didn’t want to be a sales person? Stock Option.

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

Startup Professionals Musings

OCTOBER 21, 2017

Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. Thus, options don’t “pay the mortgage” today, so to speak. Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3%

Stock 140

Stock Stock Options Advisory Board Startup 140

OnlyOnce

AUGUST 13, 2020

As part of the new section on Exits in the Second Edition of the book ( order here ), there’s a specific chapter around the sale process itself. 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. Our all-hands meeting was scheduled.

Sales 48

Sales Stock Options Startup Stock 48

The Next Web

OCTOBER 8, 2015

employees, partners) are appropriately motivated to help you succeed. lucrative sales commission plan, profit share plan), and sometimes that comes in the form of equity or equity linked incentives (e.g., stock, options, warrants). Usually this is fine, provided that important key parties (e.g.,

Equity 60

Equity Employee Warrant Stock Options 60

Both Sides of the Table

AUGUST 28, 2009

Our sales forecasts were revised downward – many times. And I made a version of this company-wide speech to our employees: “Look. Don’t overset expectations for your employees on the way in. We do hand out stock options. Our business development discussions took longer than planned.

PR 331

PR Software Review Ireland Germany 331

Startup Professionals Musings

AUGUST 10, 2019

The right motivated employees dilemma. Offer low cash early, with bonuses or stock options for milestones, to people in your personal network. If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

YoungUpstarts

OCTOBER 24, 2017

How the sale of the company is decided. 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

Berkonomics

MARCH 8, 2018

The option price should be set by appraisal under IRS rule 409a, and certainly should be low enough to recognize that common stock options are not worth as much as preferred stock, given the many preferences of the latter. Expenses for travel are often reimbursed by the corporation.

Early Stage 102

Early Stage Vesting Stock Options Preferred Stock 102

Berkonomics

SEPTEMBER 28, 2017

The document should also contain clear buy-sell clauses, forcing any sale of shares to first be offered to the corporate treasury, then to the other founders in proportion to their holdings, and then if no interest, to outside investors. Each grant to new or existing employees must be approved by the board before issue.

Early Stage 102

Early Stage Equity Stock Options Vesting 102