The Startup Magazine

MAY 2, 2023

As part of The Startup Magazine’s Female Founder Interview series , today we present Minué Yoshida, owner of the New York-based Yoshida Academy which offers courses to help clients in mastering public speaking and leadership skills and diversity, equity and inclusion consulting. Tell us more about its mission. Minué: YES!

Founder 158

Founder Equity Leadership Hiring 158

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 vs. Early Employees To help with this discussion, let me start with a definition of "early employee." Same Value for Sweat Equity as Investment Dollars? n = (1.2 - 1)/1.2 =.167.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Startup Professionals Musings

AUGUST 4, 2014

Two heads are better than one, so the first task in many startups is finding a co-founder or two. The first question I usually get is what percent of the company or equity is that person worth? Giving a co-founder a salary won’t get you the “fire in the belly” you want. Level of responsibility and time allocated.

Cofounder 261

Cofounder Stock Founder Technical Cofounder 261

SoCal CTO

NOVEMBER 1, 2010

I had a recent email dialog with the founder of a company looking for a CTO for their startup. And I tried to evaluate the idea and figure out: What did the founder really need here? Was it a Startup Founder Developer Gap ? And do I fit as a Part-Time CTO , Technology Advisor , CTO Founder , Acting CTO ?

Technical Cofounder 241

Technical Cofounder CTO Hire Equity Sweat Equity 241

Steve Blank

JANUARY 17, 2023

I asked how much he knew about how to get started. But these look for founders who have a technical or business model insight and a team. Accelerators provide these teams with technical and business expertise and connect them to a network of other founders and advisors. There are thousands of accelerators across the globe.

Technical Cofounder 353

Technical Cofounder Intellectual Property Technical Review Incubator 353

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. Seed Stage Compensation What are typical compensation numbers?

CTO Hire 329

CTO Hire Equity Seed Stage Option Pool 329

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. The data is a bit tough to deal with via a post, so I've shared it two ways: You can find a PDF with some analysis at: CTO Equity Compensation PDF.

CTO Hire 301

CTO Hire Salary Equity Southern California 301

Startup Professionals Musings

AUGUST 24, 2016

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. So the first question I usually get is what percent of the company or equity is that person worth? Giving a co-founder a salary won’t get you the “fire in the belly” you want.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

SoCal CTO

FEBRUARY 22, 2011

Todd Gitlin of Safire Partners was nice enough to compile some data on CTO Equity and Compensation at Venture Backed Companies for the LA CTO Forum and present last year. The data is a bit tough to deal with via a post, so I've shared it two ways: You can find a PDF with some analysis at: CTO Equity Compensation PDF.

CTO Hire 273

CTO Hire Equity Southern California France 273

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 ). Or they are looking at Hiring a CTO and want to see what salary and equity ranges look like.

CTO Hire 294

CTO Hire Salary Equity Los Angeles 294

SoCal CTO

JANUARY 18, 2011

I have been working full time with two founders for about 10 months on full time basis. During that time one of the founders had mentioned that for the initial agreed time (3 months, equivalent dollars could be translated to 2% of equity but no agreement was reached at that time). Don’t put yourself in this situation.

CTO 167

CTO CTO Hire Equity Vesting 167

Both Sides of the Table

JANUARY 4, 2014

Yesterday I wrote a post about “ the politics of startups ” in which I asserted that all companies have politics, which in its purest sense is just about understanding human psychology. ” Of course we all go into businesses expecting to be aligned with our co-founders but over time life changes.

Founder 340

Founder Sacramento Cofounder Technical Review 340

SoCal CTO

JANUARY 18, 2011

I have been working full time with two founders for about 10 months on full time basis. During that time one of the founders had mentioned that for the initial agreed time (3 months, equivalent dollars could be translated to 2% of equity but no agreement was reached at that time). Don’t put yourself in this situation.

CTO 150

CTO CTO Hire Equity Vesting 150

Both Sides of the Table

DECEMBER 11, 2022

Nobody cared about our valuations any more. If they didn’t care about him they certainly didn’t care about me or Jason Lemkin or Jason Calacanis or any of us. During this era, from 2009–2015, most founders I knew were in it for building great & sustainable companies. Until we weren’t. The tide has gone out.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Hunter Walker

DECEMBER 11, 2023

But outside of the history, he’s one of my favorite people to chat about the roller coasters of company building. He’s founder and CEO of Greenhouse , a ‘hiring operating system’ for companies which spans recruiting and onboarding tools for enterprises and SMEs. Daniel Chait: Oh man, I have a ton of these!

Private Equity 78

Private Equity Equity DC Leveraged Buyout 78

YoungUpstarts

MARCH 4, 2019

by Vinnie Fisher, co-founder and chief visionary of Total CEO and author of “ The Best Investment: A Better You “ As the end of the fiscal year approaches, many new business owners are finding themselves panicking to get their books in order. Balancing Assets, Liabilities, and Owner’s Equity.

Balance Sheet 172

Balance Sheet Software Review Equity Cofounder 172

Startup Professionals Musings

FEBRUARY 8, 2013

A while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.” In this context, I’m broadening the definition of partner from co-founder to “business partner.” In this context, I’m broadening the definition of partner from co-founder to “business partner.”

Partner 258

Partner Software Review CTO Hire Equity 258

Startup Professionals Musings

NOVEMBER 4, 2022

Yet every entrepreneur I meet wants to talk about the idea, and rarely mentions the team. Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. A sales fanatic on the founder team helps to contain that risk. The industry veteran. The financial suit.

Technical Cofounder 309

Technical Cofounder Cofounder Advisory Board Startup 309

David Teten

MAY 20, 2016

I’ve spent a lot of time talking to colleagues at other private equity/VC firms about their tech solutions, processes, and tools used, and I am very excited about the trend of firms putting more focus into tech solutions to enhance every stage of their private market investing. who use tech solutions in their day-to-day process.

Private Equity 113

Private Equity Equity Cap Table Venture Capital 113

VC Adventure

AUGUST 16, 2020

Quick break from Covid related topics for a moment to post something I’ve been intending to write about for a few months but haven’t had the chance to commit to paper. It strikes me that many founders never really consider this question. Why have an option program to begin with? Should everyone in my company have options

Programming 149

Programming Vesting Equity Software Review 149

David Teten

AUGUST 19, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. .

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Startup Professionals Musings

MAY 14, 2023

The best entrepreneurs manage cash flow ruthlessly and never delegate decisions about spending money. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. You will make mistakes.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

MAY 25, 2022

Business partners can be co-founders in a startup, multiple owners of an existing business, or a joint venture. You need to do the due diligence to make that decision before you sign away your equity. You need to do the due diligence to make that decision before you sign away your equity. Don’t ignore any big red flags.

Technical Review 313

Technical Review Due Diligence Partner Cofounder 313

Startup Professionals Musings

FEBRUARY 8, 2021

In fact, the cost may be minimal, if you do your networking and build a relationship with an experienced business executive or two in your domain who are willing to share and give back for a nominal retainer, perhaps one percent of your new startup equity. The cost of a co-founder is usually fifty percent of your equity.

Advisory Board 356

Advisory Board Bandwidth Cofounder Technical Review 356

www.startuplessonslearned.com

MAY 4, 2012

Founders Dilemmas: Equity Splits. The following is an excerpt from HBS Professor Noam Wasserman’s new book, The Founders Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. On average, the founders who keep the most control over their company make the least amount of money. Lessons Learned.

Equity 72

Equity Founder Technical Cofounder Cofounder 72

Startup Professionals Musings

MAY 22, 2020

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

David Teten

MARCH 14, 2018

Managers of VC funds typically want to grow their business aggressively, just like the founders we back. So we think about scaling a lot. . Among the sites we have found most helpful with practical guides for founders: Biztree , First Search , Foundersuite , Goodwin Founders Workbench , Guides.co , Inc.com , and StartupRocket. .

Private Equity 60

Private Equity Venture Capital Equity Cofounder 60

The Startup Magazine

SEPTEMBER 21, 2020

Here’s another from The Startup Magazine Founder Interview Series. It is vital to choose individuals who are passionate about their work and believe in team effort, which will impact the overall quality of service provided to clients and stakeholders. This is essential as personal brands truly reflect the brand of their company.

Leadership 167

Leadership Founder Technical Review Entrepreneur 167

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.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Startup Professionals Musings

FEBRUARY 18, 2023

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

View from Seed

APRIL 6, 2021

You have 4-6 years of professional experience as a technology operator, founder, or investor in New York. You are intentional about developing a point of view on new sectors that we can learn from. You have a deep desire to learn the venture capital business and are ready to hustle to meet the next great founder. About NextView.

Technical Review 317

Technical Review Software Review Seed Stage Cofounder 317

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. Don’t wait for the harsh reality of the demanding business world to start thinking about these tradeoffs.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

The Startup Magazine

SEPTEMBER 15, 2020

Venture capital is a type of private equity. The downside to venture capital is that the company or individual doing investing generally get equity in the company. One difference between venture capital and private equity deals, in general, is that venture capital focuses on emerging companies. What is Venture Capital Funding?

Venture Capital 179

Venture Capital Technical Review Software Review Security 179

Steve Blank

OCTOBER 23, 2023

I discovered that while I know a lot about tradecraft-related security and how to stay alive for the first minutes of an ambush, I know little about building security and computer systems security. How should you think about and mitigate risk if joining a startup? A Board of Directors has a formal and legal role.

Government 217

Government Advisory Board Salary Sales Cycle 217

David Teten

AUGUST 20, 2019

Many are reporting that they’re seeing a more diverse pool of applicants than traditional equity VCs… even though virtually none have a particular focus on women or underrepresented founders. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital.

Revenue 60

Revenue Cofounder Founder Venture Capital 60

Agile VC

DECEMBER 4, 2014

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth. Sometimes co-founders put off the equity split question for some time.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

The Startup Magazine

AUGUST 11, 2023

I will tell you brief details about seed stage funding, and deal sourcing on this page, so read the conclusion until the end. This could be a proportion of the company’s equity or investment; in other instances, it could be a portion of its later-stage profits. What exactly is the seed funding?

Seed Stage 148

Seed Stage Technical Review Early Stage Due Diligence 148