Steve Blank
APRIL 10, 2019
Investors bet that by offering prospective hires a stake in the company’s future growth- with a visible time horizon of a payoff – employees would act more like owners and work harder– and that would align employee interests with the investor interests. That made sense. Today that’s less true.
Steve Blank
JULY 11, 2017
Before the rapid rise of Unicorns, (startups with a valuation over a billion dollars), when boards were still in control, they “encouraged” the hiring of “adult supervision” of the founders after they found product/market fit. These new CEOs would also act as a brake to temper the founder’s excesses.
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SoCal CTO
SEPTEMBER 27, 2011
For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. For example, suppose you're just two founders and you want to hire an additional hacker who's so good you feel he'll increase the average outcome of the whole company by 20%. n = (1.2 - 1)/1.2 =.167. and we have 11.1%
The Next Web
OCTOBER 7, 2013
They were referring to non-founder engineers, most commonly the first hire for technology businesses. It is typical for employees to vest their options over four years with a one year cliff, which means a new hire must stay on the company for at least one year to see any shares. Said in other words, x percent of zero is still zero.
Berkonomics
JANUARY 7, 2021
Few entrepreneurs can do it alone, with subordinate hired help and no expert management to share the burdens, skill sets, and efforts involved in growing the enterprise. So, co-management is the second group to share in the bounty upon a liquidity event. Two: Co-management. Three: Outside investors.
Startup Professionals Musings
MARCH 13, 2020
No matter what the potential, every business is constrained in growth by the time and effort required to hire people, spread the message, and deliver and support solutions. Define an exit strategy for investors to liquidate their share. Demonstrate an understanding of business operation realities.
David Teten
MARCH 14, 2018
VC is a “get rich slow” business, because most VC Partners will not see a carry check for 5-10 years, after waiting for both liquidity events and for LPs to be paid first. – Hire more Partners. For a VC fund to be actively engaged in a large number of investments, it needs to hire more Partners to sit on more boards.
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