INDUSTRY INSIGHTS YOUR PEERS ARE READING
Those who have been investing in stocks and equity will know of the risks that it carries when it comes to long-term wealth creation. The volatility associated with equities and stocks can, however, turn investors away. Or, better yet, would that make you invest in the equity market? MORE
Of course, not every equity compensation story is a David Choe Story. 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. In this article, I’m going to examine: What equity compensation is. MORE
For years Mexico lagged behind a lot of other Latin America countries when it came to private equity. As well as this, their private equity investments have surpassed the likes of Russia and Turkey – meaning that the nation is slowly but surely becoming a real force. MORE
Todd Gitlin of Safire Partners was nice enough to compile some data on Start CTO Salary and Equity at Venture Backed Companies for the LA CTO Forum and present last year. You can find a public Google Spreadsheet with the data: CTO Equity Compensation Google Spreadsheet. MORE
After all, sweat equity can make up for a trim marketing budget, but it would be hard to make up for cuts in product development and customer service without sacrificing customer experience. Accessing capital to launch a business is brutal for entrepreneurs just starting out along the path. MORE
When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. Uncategorized equity VC MORE
Bootstrapping your startup often means you scrape together your cash, and often tapping your home equity value. It’s the location, height, view, lights and various other factors that go in to determine the home equity value of any private place. MORE
Bigger/better advisors who get more equity have things like; excellent domain expertise to help you avoid pitfalls, deep connections within the industry to help with the intros, partnerships, and more. As a potential advisor looking to get involved with the company; MORE EQUITY! MORE
SEPTEMBER 10, 2018
So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone. MORE
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. Jane and Dick each brings a similar level of skill and capability to the business, making it easy for them to agree to a 50/50 equity split. MORE
If you are one of the thousands of entrepreneurs who need equity funding to get your startup going (no loans to repay), you are probably overwhelmed at the prospect of finding, contacting and pitching to the huge number of qualified angels and investment groups around the country. MORE
When thinking about how to start a private equity firm or a hedge fund, security should be on the list of priorities. Moreover, the company has experience when it comes to supporting the alternative investment area, specializing in private equity firms, asset managers, and hedge funds. MORE
Lately, more founders are inquiring about convertible equity. Finance Grow convertible equity investment pitch money raising startup capital seed funding seep capitalSome wonder if it is a good replacement for convertible debt (which has become ubiquitous in seed stage startup funding). MORE
What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. equity funding investor non-profit philanthropist MORE
Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). And he was still in the process of raising additional capital, so it was equity only. However, when I told him that the level of engagement required from me and the fact that equity-only development was required, he seemed to be a bit offended. There are cases where I will do equity-only deals. MORE
entrepreneur startup co-founder partner equity businessA while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.” MORE
Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. startup control equity bootstrapping Rich Christiansen business MORE
I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. MORE
When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. 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. MORE
Equity dilution works when the same pie is divided among more people. Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.). MORE
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.” Any offers of equity compensation before the first round of institutional capital should be considered purely speculative. MORE
Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual. entrepreneur equity investors IPO startup exit MORE
Online platforms that connect startups and entrepreneurs are common, but one that connects private equity professionals? But DealMarket ( www.dealmarket.com ), launched in March this year, looks set to be the way that private equity and investment types will work in the future. MORE
There is no specific ratio between “sweat equity” and cash in a venture, and that’s actually not a good way to think about the issue. You might have created that value by slaving 18 hours a day, seven days a week for five years (in which case the value of the sweat equity is $8.70 Invested Interests Angels cash equity effort ownership startup sweat equity VCs MORE
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. MORE
Invested Interests entrepreneur equity equity distribution idea startupIt depends on the quality of the idea. I’m a firm believer in Derek Sivers ‘ calculus, which goes like this: AWFUL IDEA = -$1. WEAK IDEA = $1. SO-SO IDEA = $5. GOOD IDEA = $10. GREAT IDEA = $15. BRILLIANT IDEA = $20. The real value, of course (as other answers here have noted), comes from executing on the idea. MORE
When you’re looking for extra funds, there are typically two options: debt financing and equity financing. Equity Financing. Equity financing is provided by an investor instead of a lender. Others debt financing equity financing MORE
Loan financing and equity investment are two common methods of funding a new business start-up, assuming you do not have the capital on your own. However, if you would rather share the risk, mitigate debt obligations and bring in top-level experts, invite equity investors. By Jenny Q. MORE
In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity. People see recent equity investors making billions by getting in early, ala Facebook and Amazon, and may not be prepared for the high probability of losing everything. MORE
Today Techstars announced an “ equity back guarantee ” for any company that goes through the Techstars program starting in 2015. So we decided to launch an equity back guarantee. The post Techstars Equity Back Guarantee appeared first on Feld Thoughts. MORE
Today we’re proud to release an updated Co-founder Equity Split tool. The post Enhancing the Co-founder Equity Split Conversation appeared first on The Gust Blog. MORE
I was just asked about a particular startup situation (seed stage, CMO hire, non-founder) and particularly what compensation and equity is appropriate. MORE
It’s been about three months since equity crowdfunding was opened up to all Americans. This change means that virtually any individual, not just the wealthy, will have opportunities to make equity investments in early stage companies. By Tom Walker, CEO Rev1 Ventures. MORE
Then, the unveiling of the Securities and Exchange Commission’s proposed equity crowdfunding rules reveals a panacea for growing your business’s coffers. Equity crowdfunding vs. donation crowdfunding. Equity crowdfunding differs from donation crowdfunding in two major ways. MORE
by Adam Coffey, author of “ The Private Equity Playbook ” . One or two of the interested parties could be strategic companies, larger than yours, who are seeking to purchase your company, but for the most part, it will be private equity groups. MORE
A home equity loan, or home equity line of credit (HELOC) can be used for a number of different purposes. Using equity in your home is a great way to bootstrap your business before you ask for friends and family money or go to angel investors to raise capital for your startup. MORE
Having seen these dilemmas derail countless startups, I wish every entrepreneur and prospective founder would read this book." - Eric The following is an exclusive excerpt which sets up a common pitfall regarding equity splits. MORE
Todd Gitlin of Safire Partners - a go to resource here in LA for recruiting C-level positions at startups - was nice enough to compile some data again this year (see last year's Startup CTO Salary and Equity Data ). You can also enter salary and equity data to see where you stand. MORE
An impromptu Twitter debate arose among Fred Wilson, Dave McClure, Mark Suster, Chris Dixon and others about convertible debt, priced equity rounds, and the nuances of early stage financing. Invested Interests angel investment convertible debt convertible note deal terms due diligence financials fundraising priced equity priced rounds tactics valuation valuations VCs venture capital MORE
Giving up equity in your business, as an alternative to paying cash, often sounds like a great idea to cash-starved startups. But, giving up equity in your business is often a very big decision, and can come at a long-term price, both financially and operationally. MORE
We’ve just released our free Co-founder Equity Split tool. The post Co-founder Equity Split: A New Framework to Objectively Divide Startup Ownership and Get Back to Building a Business appeared first on The Gust Blog. Starting Your Company co-founders equity starting a company startups MORE
Home equity loans and HELOCs provide a faster financing opportunity for consumers. A spouse or child of an individual who needs assisted living services uses the equity built-up into the home to cover the costs. Others finance matters HELOCs home equity home equity loans personal financeThe products offer immediate payments for any purposes without restrictions. MORE
One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity). MORE
So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone. MORE
Equity Related Topics Feld Thoughts
SEPTEMBER 4, 2014
Today Techstars announced an “ equity back guarantee ” for any company that goes through the Techstars program starting in 2015. So we decided to launch an equity back guarantee. The post Techstars Equity Back Guarantee appeared first on Feld Thoughts.
Startup Professionals Musings
SEPTEMBER 21, 2018
If you are one of the thousands of entrepreneurs who need equity funding to get your startup going (no loans to repay), you are probably overwhelmed at the prospect of finding, contacting and pitching to the huge number of qualified angels and investment groups around the country.
Startup Professionals Musings
SEPTEMBER 10, 2018
So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone.
YoungUpstarts
JUNE 10, 2019
Home equity loans and HELOCs provide a faster financing opportunity for consumers. A spouse or child of an individual who needs assisted living services uses the equity built-up into the home to cover the costs. Others finance matters HELOCs home equity home equity loans personal financeThe products offer immediate payments for any purposes without restrictions.
Startup Professionals Musings
AUGUST 29, 2018
In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity. People see recent equity investors making billions by getting in early, ala Facebook and Amazon, and may not be prepared for the high probability of losing everything.
View from Seed
AUGUST 6, 2015
When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. Uncategorized equity VC
YoungUpstarts
MAY 9, 2019
by Adam Coffey, author of “ The Private Equity Playbook ” . One or two of the interested parties could be strategic companies, larger than yours, who are seeking to purchase your company, but for the most part, it will be private equity groups.
The Startup Magazine
APRIL 22, 2019
Bootstrapping your startup often means you scrape together your cash, and often tapping your home equity value. It’s the location, height, view, lights and various other factors that go in to determine the home equity value of any private place.
The Startup Magazine
JUNE 17, 2019
A home equity loan, or home equity line of credit (HELOC) can be used for a number of different purposes. Using equity in your home is a great way to bootstrap your business before you ask for friends and family money or go to angel investors to raise capital for your startup.
Startup Professionals Musings
AUGUST 24, 2016
So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone.
YoungUpstarts
NOVEMBER 17, 2016
It’s been about three months since equity crowdfunding was opened up to all Americans. This change means that virtually any individual, not just the wealthy, will have opportunities to make equity investments in early stage companies. By Tom Walker, CEO Rev1 Ventures.
YoungUpstarts
OCTOBER 19, 2018
When you’re looking for extra funds, there are typically two options: debt financing and equity financing. Equity Financing. Equity financing is provided by an investor instead of a lender. Others debt financing equity financing
YFS Magazine
JULY 20, 2015
Lately, more founders are inquiring about convertible equity. Finance Grow convertible equity investment pitch money raising startup capital seed funding seep capitalSome wonder if it is a good replacement for convertible debt (which has become ubiquitous in seed stage startup funding).
Gust
MAY 16, 2017
Today we’re proud to release an updated Co-founder Equity Split tool. The post Enhancing the Co-founder Equity Split Conversation appeared first on The Gust Blog.
Gust
APRIL 9, 2014
Equity dilution works when the same pie is divided among more people. Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.).
Startup Professionals Musings
APRIL 27, 2016
Yet one of the first things a potential equity investor asks about is your exit strategy. Equity investments are not loans, so there is no loan payback period or interest payments. Find a private equity firm or friendly individual. entrepreneur equity investors IPO startup exit
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. Jane and Dick each brings a similar level of skill and capability to the business, making it easy for them to agree to a 50/50 equity split.
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.
SoCal CTO
NOVEMBER 14, 2012
I was just asked about a particular startup situation (seed stage, CMO hire, non-founder) and particularly what compensation and equity is appropriate.
Startup Professionals Musings
FEBRUARY 8, 2013
entrepreneur startup co-founder partner equity businessA while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.”
Up and Running
NOVEMBER 12, 2014
Then, the unveiling of the Securities and Exchange Commission’s proposed equity crowdfunding rules reveals a panacea for growing your business’s coffers. Equity crowdfunding vs. donation crowdfunding. Equity crowdfunding differs from donation crowdfunding in two major ways.
Startup Professionals Musings
APRIL 23, 2013
Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. startup control equity bootstrapping Rich Christiansen business
Startup Lessons Learned
APRIL 24, 2012
Having seen these dilemmas derail countless startups, I wish every entrepreneur and prospective founder would read this book." - Eric The following is an exclusive excerpt which sets up a common pitfall regarding equity splits.
Startup Professionals Musings
OCTOBER 13, 2013
What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. equity funding investor non-profit philanthropist
Gust
NOVEMBER 4, 2016
We’ve just released our free Co-founder Equity Split tool. The post Co-founder Equity Split: A New Framework to Objectively Divide Startup Ownership and Get Back to Building a Business appeared first on The Gust Blog. Starting Your Company co-founders equity starting a company startups
Up and Running
DECEMBER 1, 2015
Of course, not every equity compensation story is a David Choe Story. 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. In this article, I’m going to examine: What equity compensation is.
YoungUpstarts
JULY 26, 2016
For years Mexico lagged behind a lot of other Latin America countries when it came to private equity. As well as this, their private equity investments have surpassed the likes of Russia and Turkey – meaning that the nation is slowly but surely becoming a real force.
YoungUpstarts
NOVEMBER 30, 2018
Those who have been investing in stocks and equity will know of the risks that it carries when it comes to long-term wealth creation. The volatility associated with equities and stocks can, however, turn investors away. Or, better yet, would that make you invest in the equity market?
YoungUpstarts
AUGUST 4, 2011
Online platforms that connect startups and entrepreneurs are common, but one that connects private equity professionals? But DealMarket ( www.dealmarket.com ), launched in March this year, looks set to be the way that private equity and investment types will work in the future.
SoCal CTO
NOVEMBER 1, 2010
Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). And he was still in the process of raising additional capital, so it was equity only. However, when I told him that the level of engagement required from me and the fact that equity-only development was required, he seemed to be a bit offended. There are cases where I will do equity-only deals.
Startup Professionals Musings
JULY 24, 2011
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.” Any offers of equity compensation before the first round of institutional capital should be considered purely speculative.
SoCal CTO
APRIL 18, 2012
Todd Gitlin of Safire Partners - a go to resource here in LA for recruiting C-level positions at startups - was nice enough to compile some data again this year (see last year's Startup CTO Salary and Equity Data ). You can also enter salary and equity data to see where you stand.
YoungUpstarts
OCTOBER 10, 2014
Loan financing and equity investment are two common methods of funding a new business start-up, assuming you do not have the capital on your own. However, if you would rather share the risk, mitigate debt obligations and bring in top-level experts, invite equity investors. By Jenny Q.
Gust
DECEMBER 6, 2012
Invested Interests entrepreneur equity equity distribution idea startupIt depends on the quality of the idea. I’m a firm believer in Derek Sivers ‘ calculus, which goes like this: AWFUL IDEA = -$1. WEAK IDEA = $1. SO-SO IDEA = $5. GOOD IDEA = $10. GREAT IDEA = $15. BRILLIANT IDEA = $20. The real value, of course (as other answers here have noted), comes from executing on the idea.
Gust
DECEMBER 20, 2012
There is no specific ratio between “sweat equity” and cash in a venture, and that’s actually not a good way to think about the issue. You might have created that value by slaving 18 hours a day, seven days a week for five years (in which case the value of the sweat equity is $8.70 Invested Interests Angels cash equity effort ownership startup sweat equity VCs
View from Seed
AUGUST 6, 2015
When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. 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.
Eric Friedman
JUNE 27, 2016
Bigger/better advisors who get more equity have things like; excellent domain expertise to help you avoid pitfalls, deep connections within the industry to help with the intros, partnerships, and more. As a potential advisor looking to get involved with the company; MORE EQUITY!
Startup Professionals Musings
NOVEMBER 8, 2010
One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity).
SoCal CTO
SEPTEMBER 27, 2011
I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept.
SoCal CTO
FEBRUARY 22, 2011
Todd Gitlin of Safire Partners was nice enough to compile some data on Start CTO Salary and Equity at Venture Backed Companies for the LA CTO Forum and present last year. You can find a public Google Spreadsheet with the data: CTO Equity Compensation Google Spreadsheet.
Up and Running
FEBRUARY 6, 2017
After all, sweat equity can make up for a trim marketing budget, but it would be hard to make up for cuts in product development and customer service without sacrificing customer experience. Accessing capital to launch a business is brutal for entrepreneurs just starting out along the path.
The Next Web
JUNE 17, 2015
Giving up equity in your business, as an alternative to paying cash, often sounds like a great idea to cash-starved startups. But, giving up equity in your business is often a very big decision, and can come at a long-term price, both financially and operationally.
Gust
OCTOBER 15, 2012
An impromptu Twitter debate arose among Fred Wilson, Dave McClure, Mark Suster, Chris Dixon and others about convertible debt, priced equity rounds, and the nuances of early stage financing. Invested Interests angel investment convertible debt convertible note deal terms due diligence financials fundraising priced equity priced rounds tactics valuation valuations VCs venture capital
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