The Startup Toolkit

JANUARY 10, 2017

Once the team was together, they launched version 1, got some happy customers, raised a round of funding, and then soon realised that the two tech founders had embezzled more than half the round and funnelled it into their real company, which they had been secretly building in Germany the whole time. Employees can blackmail or extort you.

Cofounder 20

Cofounder Technical Review Vesting Ratchet 20

Austin Startup

AUGUST 20, 2017

Set any vesting schedules and expiration dates on roughly similar terms, if for no other reason just so you can track all of them correctly. And, there are potential tax traps as well, especially when Non Qualified options are traded for services. Kalanick, former investor BFF turned highly disappointed by founder behavior.

Technical Review 48

Technical Review Software Review Cap Table Securities and Exchange Commission 48

Eric Friedman

JUNE 27, 2016

Regarding some of the plans I have seen work well — I am going to give you two answers; one wearing my advisor hat for the company, and one wearing my non advisor hat. As an advisor looking out for the company; You should look to get 2–4 competent advisors that can shore up on areas that complement you well. Vesting Schedules.

Equity 98

Equity Vesting Cap Table Common Stock 98

The Startup Magazine

AUGUST 11, 2017

The press release lays out Joe Zhu’s business accomplishments, but we at the magazine have seen firsthand Joe Zhu’s work behind the scenes helping struggling startups with advice and counsel on both business strategy and funding, even when he has no vested interest.

Illinois 109

Illinois Chicago Entrepreneur Cofounder 109

Startup Professionals Musings

APRIL 19, 2010

Here are some examples: Failure to document a founder agreement at the beginning. This shortcut can lead to the so-called “forgotten founder” problem. Early co-founders often drop out of the picture due to disagreements, and you forget about them, but they don’t forget about the verbal promises you made.

Non-Compete 125

Non-Compete Accredited Investor Startup Cofounder 125

Tim Keane

JANUARY 12, 2010

  If the entrepreneur has two competing offers, that’s an excellent way to understand what the market will pay. Dividends come in two basic flavors – cumulative and non-cumulative.   So, let’s assume here we have an 8% non-cumulative dividend. Non-financial terms affecting Risk.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

DECEMBER 8, 2011

Likewise, founders can benefit from understanding basic characteristics of the overall legal structure, formation and governance documents, rights and responsibilities of team members, etc. Determine who will serve on the Board of Directors and in executive officer positions (usually founders). Newco, Inc.”) Advisory board agreements.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

venturehacks.com

MARCH 21, 2008

The options typically vest monthly over 1-2 years with 100% single-trigger acceleration and no cliff. Although the advisor is on a vesting schedule, you should expect them to add most of their value up-front—that’s normal. Does this stake need to have vesting schedule? Out of these, only fund raising is critical for us.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

ithacaVC

JUNE 20, 2011

Setting up a legal entity that will have multiple owners from inception (like 2 or more founders) requires good lawyer input. Setting up a legal entity that will have multiple owners from inception (like 2 or more founders) requires good lawyer input. Lawyer time required (including vesting agreements for founders): 3 to 6 hours.

Stock Options 58

Stock Options Vesting Subscription Agreement Founder Vesting 58

Hearpreneur

MAY 27, 2020

So if Tesla didn’t come onto the scene in 2008 with a real, compelling reason to exist (create the world’s best electric vehicle and make it fun to drive and stunning to look at) it would never have a chance to compete with established incumbents. In the same way, your company needs a reason to exist.

Entrepreneur 122

Entrepreneur Social Media Audience Conversion 122

maplebutter.com

JANUARY 8, 2013

Non of this academic stuff. Whats is the best way to find a co-founder for your startup? However, one of my co-founders doesn’t seem to be as motivated as the rest of us. As founders invest massive amounts of time into their start-up, how critical is it for them to come out of their “hermit caves” and network?

Technical Review 44

Technical Review Startup Cofounder Software Review 44

blog.expensify.com

APRIL 24, 2012

Microsoft started down this path when they were the only game in town, explicitly to maintain their monopoly by making it as hard as possible to either port Windows apps to non-Windows platforms, or to even conceive of how to do it in the first place. Basically, the lesson in this guys argument is entirely non-technical. Get a grip.

Java 107

Java PHP Software Review Coder 107

Duct Tape Marketing

AUGUST 10, 2022

In this episode, Founder of DCM Insights and best-selling author, Matt Dixon, joins me to talk about the growing problem of customer indecision and a new approach that turns conventional wisdom on its head. Turns out, what once rang tried and true, doesn’t work so well today. And listening for those echoes.

Customer 68

Customer Sales Networking .Net 68

dondodge.typepad.com

JANUARY 15, 2011

The key is to have several VCs or investors competing for the deal to arrive at a "fair" valuation. The second and third rounds of funding take additional shares of equity and dilute existing investors and founders. Founders and VPs usually have about 10% and employees have about 15%. it Founder conundrum.

Equity 40

Equity Employee Dilution Valuation 40