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Be careful about equity and options!

Berkonomics

How to give away too much too soon: Most early-stage companies make the mistake of making option grants to new hires at all levels that are too aggressive and distort the capital structure of the company to a degree that damages future professional investment. Let me try to advance a few rules of thumb to help guide you here.

Equity 62
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Why Startups Fail - 20 Top Reasons Gleaned from 32 Startup Failure Post-Mortems

www.chubbybrain.com

11 – Pricing Issues. Pricing is one part science, 10 parts art. And a dark art according to a large number of startups which failed and who attributed product pricing that was too high or too low to make money. So what does this teach us? Dwelling or being married to a bad idea is not a good way to allocate resources.

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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

” 1) Agency/Bias Issues With Respect to Advisors. Anytime you hire someone to represent you in a transaction you are subject to principle agent risk , the concern being you never know if the “agent” might be optimizing things for their own behalf, rather than simply working in the best interest of the client.

IPO 82
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The cardinal sin of community management

Startup Lessons Learned

In fact, I am convinced that if you could find some of IMVU’s earliest adopters, they would say something like this: “sure, those guys at IMVU HQ were helpful in writing code and stuff, but in the end they were just the hired help. It was really the community who built that product.&# My last real concern is with the new 2.0

Community 158