Startup Professionals Musings

AUGUST 4, 2014

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 percent of the equity. The value in a startup is all about tangible results, so there is no equity value in the idea alone. Amount of venture funding provided.

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Cofounder Stock Founder Technical Cofounder 261

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. There are cases where I will do equity-only deals. who start with small equity percentages don’t end up making very much from startups.

Technical Cofounder 241

Technical Cofounder CTO Hire Equity Sweat Equity 241

Startup Professionals Musings

SEPTEMBER 27, 2023

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. Make sure the government waits for a stock sale to collect taxes. Spread stock issuance over an earning period. This is called stock dilution control.

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Stock .Net Vesting Founder Vesting 240

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. Amount of venture funding provided.

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Equity Cofounder Technical Cofounder Intellectual Property 120

The Startup Magazine

MAY 19, 2020

For many entrepreneurs and startups, investing in stocks is a good option for building more capital. So knowing more about stocks and trading is critical. A stock, which can also be referred to as a share or equity, is a proof of ownership of a fraction or part of a business entity. through a process of stockbroking.

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Stock Securities and Exchange Commission United Kingdom Technical Review 90

The Startup Magazine

APRIL 17, 2019

When you are looking to trade stocks and shares online, what better a type of person to ask than one that is experienced, and that can give you valuable online trading tips and advice based on that experience?! In this article, we will cover 5 investing ideas that only an experienced stock trader would give you.

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Stock Early Stage Software Review Equity 90

Startup Professionals Musings

NOVEMBER 4, 2022

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. Outside professionals are always available, but they may have their own agenda, such as building a career, making money quickly, or managing up the stock price for a quick exit. The industry veteran. The operations superstar.

Technical Cofounder 309

Technical Cofounder Cofounder Advisory Board Startup 309

SoCal CTO

JANUARY 18, 2011

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). I tried to argue that the equity should be what it was at the time I joined and discussed but there was no formal agreement at that time.

CTO 167

CTO CTO Hire Equity Vesting 167

SoCal CTO

JANUARY 18, 2011

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). I tried to argue that the equity should be what it was at the time I joined and discussed but there was no formal agreement at that time.

CTO 150

CTO CTO Hire Equity Vesting 150

Startup Professionals Musings

OCTOBER 6, 2023

Startup equity investments imply a long-term business relationship, lasting an average of five years. During that period, it is very difficult for either party to get out of the deal, since there is no public market for the stock, and business divorces normally mean bankruptcy.

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Technical Review Due Diligence Term Sheet Bankruptcy 296

Up and Running

DECEMBER 1, 2015

At the time, Facebook wasn’t the goliath it is today and so, Choe was given a couple of options: he could have $60,000 in cash, or stock (equal to the equivalent amount of the cash back then). Of course, not every equity compensation story is a David Choe Story. In this article, I’m going to examine: What equity compensation is.

Equity 60

Equity Employee Stock Options Vesting 60

Steve Blank

OCTOBER 23, 2023

Advisory Board members are often paid in a balance of equity (stock options) and cash (“cash” is the industry term for money wired to your bank account). If you join a big company, assuming it’s public, you’ll get stock which immediately can translate into financial gains assuming the company performs well. Look before you leap.

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Government Advisory Board Salary Sales Cycle 212

Startup Professionals Musings

FEBRUARY 9, 2020

Being the leader doesn’t mean more equity, nor does it mean the leader will necessarily be CEO. Outside professionals are always available, but they may have their own agenda, such as building a career, making money quickly, or managing up the stock price for a quick exit. The industry veteran. The operations superstar.

Technical Cofounder 308

Technical Cofounder Cofounder Advisory Board Stock Options 308

David Teten

MARCH 14, 2018

Sophisticated VC and private equity funds have a wide array of options for leveraging outside operating executives. If you’re thinking of hiring a Partner, I suggest see How to Negotiate a Partner Role at a Venture Capital or Private Equity Firm. – Create a franchise and license access to it , e.g., the Draper Venture Network.

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Private Equity Venture Capital Equity Cofounder 60

Startup Professionals Musings

JANUARY 24, 2021

Startup equity investments imply a long-term business relationship, lasting an average of five years. During that period, it is very difficult for either party to get out of the deal, since there is no public market for the stock, and business divorces normally mean bankruptcy.

Technical Review 379

Technical Review Due Diligence Term Sheet Bankruptcy 379

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. It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.”

Equity 237

Equity Stock Options Advisory Board Stock 237

Startup Professionals Musings

NOVEMBER 26, 2022

Maintaining your team’s passion and freedom to focus first on innovating for customers are only a couple of the reasons for thinking hard before you seek money from crowdfunding, angel investors, venture capital organizations, or attempt to qualify for a public stock offering.

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Cost Bootstrapping Advisory Board Startup 267

Startup Professionals Musings

MAY 22, 2020

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.

Technical Review 436

Technical Review Due Diligence Sweat Equity Burn Rate 436

David Teten

JANUARY 19, 2021

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

FEBRUARY 18, 2023

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.

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Sweat Equity Burn Rate Technical Review Intellectual Property 207

Version One Ventures

AUGUST 21, 2023

Enter Dinari, the start-up that wants to provide blockchain-backed access to corporate equity. dShares (Dinari Securities Backed Tokens) offer access to securities such as Apple, Google, and Tesla stock. Alongside its seed raise, the company announced the launch of its dShare platform outside of the US.

Stock 78

Stock Thailand Mexico Equity 78

techcrunch.com

JUNE 22, 2012

Free Startup Docs: How Much Equity Should Advisors Get? Entrepreneurs want to compensate their mentors and advisors for the time they dedicate to helping their businesses grow, but they have no idea how much equity to offer. In particular, Ressi said, the team is interested in reactions to the above equity matrix. Headphones.

Equity 94

Equity San Francisco Startup Silicon Valley 94

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

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. It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.”

Stock Options 343

Stock Options Advisory Board Stock Startup 343

ReadWriteStart

JUNE 1, 2020

Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. These investments are made instead of shares or equity in your startup. The shares given out can either be common stocks or preferred stocks. ? Debt investment. Equity investors.

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Startup Entrepreneur Elevator Pitch Seed Stage 150

The Startup Magazine

JULY 13, 2021

Using that home equity for a startup certainly looks enticing right now, doesn’t it? The Amount of Equity. Do you have significant home equity for a startup? It’s tempting to look at $20,000 or so in equity and think every little bit counts. Using Home Equity for a Startup. Amount in Savings.

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Equity Startup Stock Business Plan 156

The Startup Magazine

MARCH 14, 2022

The equity dilution at this nascent stage is on desirable terms; such investing can lead to profitable returns. Once the company has established itself and created brand recognition, then the company’s promoters look to list the shares of the company on the stock exchanges. 2) Seed funding. The transforming startup ecosystem.

Technical Review 144

Technical Review Due Diligence India Startup 144

Startup Professionals Musings

FEBRUARY 29, 2020

Maintaining your team’s passion and freedom to focus first on innovating for customers are only a couple of the reasons for thinking hard before you seek money from crowdfunding, angel investors, venture capital organizations, or attempt to qualify for a public stock offering.

Bootstrapping 310

Bootstrapping Advisory Board Venture Capital Startup 310

Up and Running

SEPTEMBER 19, 2017

When you accept outside money, particularly a private equity (PE) investment, however, that changes. In this article, I’ll provide some personal stories of how investors have navigated the balance between raising private equity capital and not losing control of their startup. You make all the decisions, when you want, how you want.

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Private Equity Pre-Money Valuation Equity Startup 94

The Startup Magazine

SEPTEMBER 10, 2020

If this type of payout interests you, read on to learn more about the top stocks that pay monthly dividends. Main Street Capital is a publicly traded private equity firm that offers equity and debt financing to lower middle-market companies with a revenue between $10 million and $150 million. Main Street Capital. Realty Income.

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Dividend Stock Finance Private Equity 89

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.

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Cofounder Equity Founder Sweat Equity 255

Startup Company Lawyer

AUGUST 31, 2012

Quick answer: convertible equity (or a convertible security) is convertible debt without the repayment feature at maturity or interest. ” In response, Seth Levine wrote a very thoughtful post on convertible debt versus equity. Fred Wilson has been openly critical of convertible debt , and prefers priced equity rounds.

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Convertible Security Equity Security Preferred Stock 73

www.entrepreneur.com

SEPTEMBER 22, 2011

What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Entrepreneurs often ask me how to value the sweat equity invested in their startup. But over the years, I have come to realize that sweat equity isn't the same thing as market value for your startup.

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Sweat Equity Equity Fractional CTO CTO 55

YoungUpstarts

AUGUST 19, 2019

When you hear about investments, stocks, trading, bulls and bears, you might feel a bit intimidated, even confused. The stock market has historically been a long-term source of wealth creation, but due to a widening wealth gap, has become largely inaccessible to young people. by Thomas Beattie, CEO of Voleo. It’s understandable.

Investment Bankers 147

Investment Bankers Technical Review Stock Vesting 147

YoungUpstarts

JANUARY 10, 2020

Zain Jaffer is a serial entrepreneur and the Founder and CEO of Zain Ventures , an investment firm that invests globally in start-ups, real estate, stocks, fixed income, hedge funds, and private equity. This could be the precursor that ultimately wins back their trust and gets them onboard for good.

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Customer Development Team Review Advisory Board Private Equity 347

Startup Professionals Musings

OCTOBER 17, 2013

Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. Thus, stock doesn’t “pay the mortgage” today, so to speak. Your compensation is the total package of stock plus salary plus benefits. Marty Zwilling.

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Stock Options Stock Advisory Board Startup 224

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. It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.”

Stock 140

Stock Stock Options Advisory Board Startup 140