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Techstars Equity Back Guarantee

Feld Thoughts

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.

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Using Debt Like Growth Equity

A VC : Venture Capital and Technology

If you are in the venture or startup business and don’t read Dan Primack , consider changing that. ModCloth effectively treated the debt like growth equity, rather than recognizing the time bomb it could become. When the debt first came due in April 2015, existing ModCloth investors pumped in new equity to, in part, kick repayment down the road for two years. But startups must recognize that not all cash is created equal. (2)

Are You Getting Your Fair Share Of Startup Equity?

Startup Professionals Musings

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? entrepreneur fair share startup startup equity

Employee Equity

A VC : Venture Capital and Technology

Andy was a founding partner at Benchmark and knows his way around a startup cap table. Wealthfront Equity Plan from Wealthfront. The important similarities are that Andy and I both encourage companies to not only grant equity at the start date but also on an ongoing basis so that employees' equity ownership grows as their tenure and contributions grow. Where Andy and I differ a bit is how to calculate how much equity should be granted.

Equity for Early Employees in Early Stage Startups

SoCal CTO

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. The first few people into a startup are on a spectrum of founder vs. early employee. Same Value for Sweat Equity as Investment Dollars?

What VC Can Learn From Private Equity

A VC : Venture Capital and Technology

I spent a week in Europe a few weeks ago with our friend Eric who is a managing partner in a private equity firm. I’ve also had the pleasure of working on a board of one of our portfolio companies with a private equity investor who is making a few minority investments. Venture Capital and Private Equity are very different investment disciplines. 2/ Private equity can’t afford to lose money on an investment.

Startup CTO Salary and Equity Data

SoCal CTO

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. Todd is a go to resource for people looking for talent in startups.

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For Equity Investors, A Startup Has To End To Win

Startup Professionals Musings

The last thing a new entrepreneur wants to think about for a new startup is how it will end. 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.

Should You Offer Equity Compensation to Employees?

Up and Running

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.

CTO Salary and Equity Trends 2009-2011

SoCal CTO

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 ).

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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

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.

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A VC Puts On His Equity Crowdfunding Hat

YoungUpstarts

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.

Founder's Dilemmas: Equity Splits

Startup Lessons Learned

The following is an excerpt from HBS Professor Noam Wasserman’s new book, The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. Setting the early equity split in stone is one of the biggest mistakes founders can make.

Founder's Dilemmas: Equity Splits

www.startuplessonslearned.com

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. In such ways, even the most comfortable equity split can be thrown into disarray.

Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Sometimes co-founders put off the equity split question for some time. Both of these are typically reflected in the founder equity split.

Mathematical vs. Economic Dilution of Startup Equity: Thinner Slices of an Extra-Large Pizza

Gust

Let’s get right down to business: Dilution of founders’ and other early shareholders’ equity in startups is frequently a subject of intense interest and debate. The simplest illustration is the first VC funding round of a new startup.

CTO Equity and Compensation at Venture Backed Companies

SoCal CTO

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. Todd is a go to resource for people looking for talent in startups.

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An Advisor Equity and Advisor Pool Breakdown

Eric Friedman

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!

Visualization of Startup CTO Equity and Salary Data

SoCal CTO

A long-time friend and colleague, Steve Wexler, who is great at visualization took my Startup CTO Salary and Equity Data and produced a really need interactive visualization via Tableau. Of course, as you would suspect, equity percentages dilute based on years in business.

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Can A Hoodie Increase Brand Equity?

crowdSPRING Blog

From a brand equity perspective, the purple hoodie was a unique way to acquire 2,000 die-hard brand advocates. Startups have been using branded apparel as a way to build brand equity for years. Image credit: Twitch.

Startup compensation: flat salaries and equity/options work best

The Equity Kicker

Here’s why: Quarterly goal setting is still best practice (now called OKRs ) but linking them to compensation creates a misalignment of objectives – the startup wants big goals, the employee wants achievable goals so he can get his bonus. On the softer side, an increasing number of studies show that fixating on performance impinges on creativity and can weaken intrinsic motivation – and in startups you need creativity and intrinsic motivation in spades.

Equity Crowdfunding: Is it Right for Your Business?

Early Growth Financial Services

Though still not fully phased in, the Jumpstart Our Business Startups Act (JOBS Act) which Congress passed in January 2012, kicked off a wave of business and investor interest in (and platforms to facilitate) equity crowdfunding.

Equity value

Chris Dixon

This is a useful way to understand the meaning of “equity value” You learn in finance that equity value is the overall value of a the stock (i.e. equity) of a business, which in turn is the present value of all future profits. Of course with startups the future is extremely uncertain, leading to a huge variance in valuations. ” In a competitve labor market, service businesses tend to have low margins and therefore low equity values. startups

Marketing Sweat Equity: Getting Your Startup’s First Sales—Without Spending Money on Consultants and PR

Up and Running

So, if you’re anything like me, your first startup will need to be self-funded and operated with a very lean budget. Instead, I had to scrape and claw my way through the pre-launch, startup process, and scale of my business.

How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees?

Free Startup Docs: How Much Equity Should Advisors Get?

techcrunch.com

Startups. Startup Battlefield. startups. Free Startup Docs: How Much Equity Should Advisors Get? He covers startups, music, social, mobile, health, and education. In particular, Ressi said, the team is interested in reactions to the above equity matrix.

Startups Should Be Responsible for Explaining Equity to New Employees

View from Seed

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

Equity basics: vesting, cliffs, acceleration, and exits

The Startup Toolkit

false As a cheatsheet, the “normal” equity structure is: Founder terms: 4 year vesting, 1 year cliff, for everyone, including you. Getting equity structures right. When it comes to equity terms, there are only 3 things to understand: vesting, cliffs, and acceleration.

Visualization of Startup CTO Equity and Salary Data

SoCal CTO

A long-time friend and colleague, Steve Wexler, who is great at visualization took my Startup CTO Salary and Equity Data and produced a really need interactive visualization via Tableau. Of course, as you would suspect, equity percentages dilute based on years in business.

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Equity-Only CTO and Equity-Only Developers

SoCal CTO

I had a recent email dialog with the founder of a company looking for a CTO for their startup. Was it a Startup Founder Developer Gap ? Did they really need a Startup CTO or Developer or both? 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. There are cases where I will do equity-only deals.

What Founders Need to Know About Startup Equity

Early Growth Financial Services

Equity is a startup’s lifeblood. One thing to remember: your equity is precious: don’t be lavish in giving it away. There’s no single best … Continue reading → Equity / Debt / Venture Funding And, just as with any other element of building a successful business — putting the right team in place, setting and hitting milestones, and effectively managing cash — developing your capital strategy is an important a piece to get right.

Startup Equity For Employees

www.payne.org

Startup Equity For Employees. 7 Salary vs Equity. The re-heating of the venture funded tech market has pushed a heat up of the hiring market, and Im getting more calls from friends asking for help understanding startup stock (equity) offers. UPDATE: If youre a founder or near-founder, your equity terms are likely defined by the funding terms negotiated with the investors. In a startup, dilution happens, and you just need to factor it in.

Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

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.

Financing your business: Debt vs Equity

StartupCFO

VentureBeat wrote a post recently on debt versus equity which one is right for your business. So what I would like to do here is layout a more comprehensive framework for the pros and cons of debt versus equity and when you could look at each for financing your business. Equity.

Texas Proposes Equity-based Crowdfunding Rules

SiliconHills

By LAURA LOREK Founder of Silicon Hills News In Austin, one of the big issues facing startups, particularly in the technology industry, is lack of access to capital. Last year, Austin companies received $626 million in venture capital, or 49 percent of the venture capital dollars for Texas, said Michele Skelding, senior vice president of […] The post Texas Proposes Equity-based Crowdfunding Rules appeared first on SiliconHills.

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The right way to give equity to your employees

The Next Web

As a rule, entrepreneurs are very protective of their equity, and try to keep 100 percent ownership for themselves. lucrative sales commission plan, profit share plan), and sometimes that comes in the form of equity or equity linked incentives (e.g.,

Series AA Equity Financing Documents

ycombinator.com

Series AA Equity Financing Documents Y Combinator and Wilson Sonsini Goodrich & Rosati are happy toannounce the Series AA Equity Financing Documents. Their goal is to makeangel funding rounds for startups easier for both sides.

Equity Compensation at a Startup is a Big Gamble

Startup Professionals Musings

Wouldn’t you like to be one of the lucky people who joined Google and Microsoft when these were startups, and now be a multi-millionaire? So people ask me “How many shares should I ask for when I join a startup today?” compensation entrepreneur startup employees equity business

The slowdown in equity financing is changing venture debt too

Version One Ventures

Debt funding is an interesting option for start-ups in two scenarios: you can increase your funding base while times are good in order to maximize growth or you can use it stretch your runway when equity raises are tougher (or you don’t want to price your equity). But as the equity funding market is cooling down, we see the impact rippling over to the venture debt market as well. And, equity markets were providing cheap alternatives for raising capital.

Accelerator Investments Should Be Convertible Equity

The Startup Lawyer

In other words, the more difficult the terms or onboarding process (including the investment documents), the more likely the best startups would choose a different … Continue reading → The post Accelerator Investments Should Be Convertible Equity appeared first on Startup Lawyer.