The Next Web

NOVEMBER 20, 2013

There are a lot of variables to go into calculating a fair equity split a startup team. Understand that not all of this will be granted day one, with everyone having higher stakes in the short run, but you will have an equity cushion to play with as the employee base scales. How do you manage your equity split in your company?

Cofounder 136

Cofounder Equity Founder Seed Stage 136

techcrunch.com

JUNE 22, 2012

Free Startup Docs: How Much Equity Should Advisors Get? So, you go out to find a veteran entrepreneur, ask her to be an advisor in your fledgling company … and then what? In particular, Ressi said, the team is interested in reactions to the above equity matrix. Digital Cameras. Headphones. CrunchBase. Hot topics.

Equity 94

Equity San Francisco Startup Silicon Valley 94

Hunter Walker

FEBRUARY 20, 2024

The Five Lessons That Have Guided My Career [Avni Patel Thompson/Milo] – Derived from a talk she gave at a High School Career Day, CEO/entrepreneur Patel Thompson thinks that guidebooks are better than roadmaps when it comes to career advice. Stretching things out to a six-year vest helps to prevent co-founder abandonment.

Founder Vesting 59

Founder Vesting Vesting Cap Table Founder 59

Startup Professionals Musings

JANUARY 15, 2021

When an entrepreneur first incorporates a business, they may find themselves the proud owner of 10 million shares of common stock, commonly called founder’s shares. every entrepreneur should incorporate early and file an 83(b) election with the IRS within 30 days of founding the company. Key founder vesting should have no cliff.

Vesting 298

Vesting Dilution Stock Founder Vesting 298

The Startup Magazine

FEBRUARY 21, 2024

As the CEO of one of Canada’s largest private credit firms, can you describe the basics of private credit and its increasing importance to budding entrepreneurs? For entrepreneurs, this means not just securing capital, but also gaining a collaborator committed to their growth journey. The firm has made more than $4.5

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

Feld Thoughts

SEPTEMBER 2, 2011

The founders each have common shares that will vest over four years. The vesting schedule protects each of the co-founders in case one gets hit by a bus or decides to drop the project after a short period of time. Equity is split 55% and 45%, but where is that officially recorded? Time to update the cap table.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

View from Seed

DECEMBER 4, 2014

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly. Sometimes co-founders put off the equity split question for some time.

Equity 315

Equity Founder Sweat Equity Cofounder 315

www.startuplessonslearned.com

MAY 4, 2012

Founders Dilemmas: Equity Splits. For example, most entrepreneurs know that the most successful entrepreneurs - from Bill Gates to Jeff Bezos - kept tight control over their companies. Having seen these dilemmas derail countless startups, I wish every entrepreneur and prospective founder would read this book." - Eric.

Equity 72

Equity Founder Technical Cofounder Cofounder 72

Startup Professionals Musings

MAY 8, 2022

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. You have very little money, and you don’t want to give away your equity. Recognize that the best people don’t work for free.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

Agile VC

DECEMBER 4, 2014

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

www.inc.com

SEPTEMBER 24, 2011

Entrepreneur news from reporter Eric Markowitz. Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. Parker found that equity as compensation helped build loyalty to his company -- even among consultants.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

NZ Entrepreneur

SEPTEMBER 29, 2021

Remuneration will reflect the stage of the startup but it’s generally at a rate of about $500-1000 a meeting or directors might be paid in equity at about 0.5-0.75% This equity will vest over 2-3 years. The post Opinion: It’s a startup world appeared first on NZ Entrepreneur Magazine.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

Agile VC

DECEMBER 4, 2014

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

ReadWriteStart

MAY 3, 2012

The conflicting (frequently unsolicited) advice startup entrepreneurs too often hear is enough to make you tune it all out. But entrepreneurs who have done it have discovered some best practices to increase the odds of success. But bootstrapping a startup is not easy, requiring discipline and fortitude, as well as ingenuity.

Bootstrapping 137

Bootstrapping Software Review Startup Equity 137

Startup Professionals Musings

DECEMBER 14, 2014

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. You have very little money, and you don’t want to give away your equity. business dilemma entrepreneur founder Noam Wasserman'

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

Scott Edward Walker

SEPTEMBER 28, 2011

Introduction This post was originally part of the “ Ask the Attorney ” series I am writing for VentureBeat (one of my favorite websites for entrepreneurs). Vesting Restrictions. The first deadly mistake relates to vesting restrictions. Below is a longer, more comprehensive version. IP Ownership.

Vesting 89

Vesting Software Review IP Intellectual Property 89

Gust

DECEMBER 1, 2011

When meeting with early stage entrepreneurs for the first time, after reviewing a demo or hearing their pitch, I often ask them to articulate what they’re most focused on building. I don’t fault entrepreneurs for relegating startup legal work to the bottom of their daily triage list; founders are spread incredibly thin.

IP 114

IP Intellectual Property Equity Liquidity Event 114

Both Sides of the Table

SEPTEMBER 29, 2013

It should help some entrepreneurs to better access early-stage capital and should allow some angel investors better access to deal flow. In Jason’s mind half of the VC industry will now disappear as entrepreneurs flock to him and to Dave Morin for their money. Helpful to Entrepreneurs – The most obvious.

Syndicate 356

Syndicate Syndication Cofounder Early Stage 356

NZ Entrepreneur

MAY 27, 2019

If you’re scared about giving up on control or equity, then read on. There are plenty of Meetups, groups and events for NZ startups and entrepreneurs but the biggest thing to note here is that they won’t come and find you – you have to get out, get networking and find them! Get entrepreneur articles by email once a month.

Technical Cofounder 64

Technical Cofounder Cofounder Technical Review Software Review 64

Scott Edward Walker

JUNE 30, 2019

To Our Clients & Friends: Welcome to our weekly series “ Helping Entrepreneurs Succeed.” Each week (or two), we share a favorite video clip of a successful entrepreneur, investor or business leader on a variety of topics. The post How Much Equity Should You Give Your Cofounder? Cheers, Scott. www.youtube.com/watch?v=9NhEBVPlJs4.

Cofounder 45

Cofounder Equity Vesting Video 45

www.instigatorblog.com

OCTOBER 23, 2010

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. 1% but they’re not going to be overwhelmed by it, or insanely incentivized by that equity alone. I do believe that early employees should trade salary for equity.

Equity 41

Equity Employee Startup Vesting 41

David Teten

JULY 10, 2019

pre-launch, BIG equity, big peeps involved–ANY TIPS?? The CEO is ideally a successful serial entrepreneur who has taken a startup all the way to an exit. We agree on an equity split, vesting, and initial compensation structure. And how do you split the equity? Do you want to make America functional again ?

America 60

America Technical Review Advisory Board Due Diligence 60

Startup Professionals Musings

AUGUST 19, 2017

Most entrepreneurs struggle with many startup founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. You have very little money, and you don’t want to give away your equity. Recognize that the best people don’t work for free.

Hockey Stick 144

Hockey Stick Cofounder Entrepreneur Liquidity Event 144

Startup Professionals Musings

APRIL 10, 2016

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. Calculate employee stock option values and vesting times, as well as salary. When did this effort really start, including pivots? Look for examples of similar companies and revenue multiples achieved from acquirers.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

JULY 24, 2011

By the way, you will normally only be offered “options,” which vest over a 4-year period after a 1-year “cliff.” It never hurts to ask in a job interview what stock options are available, and don’t accept an offer which promises to “work out the equity terms later.” Advisory Board Member, 1% Senior Engineer,3 -.7%

Equity 234

Equity Advisory Board Stock Options Stock 234

Scott Edward Walker

FEBRUARY 6, 2016

“I didn’t even know what a vesting schedule was… [and] that mistake probably cost me billions of dollars.” Indeed, the failure to set-up vesting schedules is now the most common mistake I see startups make. This is exactly what would happen without vesting schedules. www.youtube.com/watch?v=-R01YcgJ3Yw. v=-R01YcgJ3Yw.

Vesting 40

Vesting Cofounder Equity Dilution 40

Startup Lessons Learned

APRIL 24, 2012

For example, most entrepreneurs know that the most successful entrepreneurs - from Bill Gates to Jeff Bezos - kept tight control over their companies. In Noam’s dataset, 73% of founding teams split equity within a month of founding, a striking number given the big uncertainties early in the life of any startup.

Equity 168

Equity Founder Cofounder Vesting 168

Startup Professionals Musings

JANUARY 29, 2018

It’s great motivation for every entrepreneur to get that value up quickly. Even though initial stock has no market value today, it is extremely valuable in dividing equity ownership between co-founders, investors, and early partners. Always specify a vesting period for new partners.

Stock 129

Stock Vesting Preferred Stock Cofounder 129

YoungUpstarts

JANUARY 9, 2014

Establishing your own business can be a thriving and fulfilling opportunity for young entrepreneurs. Vest your Equity over time. With this in mind, it is worthwhile vesting your equity over time rather than attaining your shares all at once. Advice For The Young At Heart entrepreneur law legal advice'

Vesting 160

Vesting Entrepreneur Cofounder Equity 160

David Teten

MAY 7, 2019

The CEO is ideally a successful serial entrepreneur who has taken a startup all the way to an exit. We agree on an equity split, vesting, and initial compensation structure. And how do you split the equity? However, we’ll consider first-time CEOs. You must have a strong product management pedigree. This work is unpaid.

America 60

America Technical Review Advisory Board Due Diligence 60

Startup Professionals Musings

AUGUST 10, 2019

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. You have very little money, and you don’t want to give away your equity. Recognize that the best people don’t work for free.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Berkonomics

JANUARY 25, 2024

Entrepreneurs will have a relative willing to devote time, a school friend with business experience, professionals who charge for the service, investors with a reason to promote your success and more. And some will willingly work for stock options, an amount to be negotiated based upon time spent and stage of corporate development.

SBA 62

SBA Warrant Stock Options Vesting 62

Startup Professionals Musings

MAY 18, 2015

When an entrepreneur first incorporates his or her business, he or she may find him or herself the proud owner of 10 million shares of common stock, commonly called founder’s shares. every entrepreneur should incorporate early and file an 83(b) election with the IRS within 30 days of founding the company. In the U.S.,

Stock 120

Stock Vesting Common Stock Founder Vesting 120

Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137

Equity Finance Pre-Money Valuation Denver 137

The Next Web

AUGUST 26, 2013

It’s part three of a series, cross-posted from his own blog , in which he draws on his experience to offer advice for aspiring entrepreneurs in Europe and beyond. They’ve worked with hundreds of entrepreneurs, and built huge tech companies themselves (e.g. 15-20% equity for first investors. 10-20% for employees.

Management 120

Management Cofounder Startup Bootstrapping 120

Growthink Blog

MARCH 19, 2012

The result is that far too many entrepreneurs can't start or grow their ventures—and can't provide jobs and new products and services to spur our economy. Letting small companies sell equity stakes online would be a huge boost to those firms—like angel investing on steroids. million U.S.

Equity 88

Equity Securities and Exchange Commission Private Equity SEC 88

Both Sides of the Table

MAY 9, 2011

Give them a large sum of equity. Vested over 4 years. If you do decide to go down the 50/50 route, please at least consider: Make sure you have founder vesting for both of you. It is not uncommon to see startup founders walk before raising capital and take large pieces of equity with no vesting. I am one of them.

Cofounder 393

Cofounder Founder Vesting Founder Vesting 393