crowdSPRING Blog

NOVEMBER 7, 2014

Startup Equity and Stock Options: What’s It Worth to You? The Thin Skin of the Venture Capital Market - crowdspring.co/1xaoN3x. The @crowdSPRING community partners with US State Dept for Social Impact | Justmeans – crowdspring.co/1ux55RH. A Counterintuitive System for Startup Compensation – crowdspring.co/1zRImmt.

Social Media 99

Social Media Small Business Design Media 99

Both Sides of the Table

APRIL 19, 2011

Called Tim Spicer (c-companies partner) and he told him matt, they only want one thing, more warrant coverage!!! Mark: 10% warrant coverage is like stock options. Icing is the warrant for banks – stock they can buy in future but don’t have to buy so they make their $$ later in the future. And he said ok got it.

Acquisition 304

Acquisition Warrant Customer Term Sheet 304

VC Cafe

SEPTEMBER 16, 2021

I’ve also shared my insights with Techcrunch, in “ 5 creator economy VCs see startup opportunities in monetization, discovery and much more “ As venture capital investors, one question we think about a lot at Remagine Ventures is “where are the opportunities for startups in the Creator Economy?”

Startup 207

Startup Social Media Venture Capital Audio 207

Startup Professionals Musings

MARCH 6, 2012

Stock options, if you get them, won’t help you pay the mortgage for a least a couple of years, and the value then is totally unpredictable. One family partner works for a startup, and the other sticks with a large enterprise company like Intel, HP, Apple, IBM, or Fujitsu. Visit venture capital websites.

Silicon Valley 246

Silicon Valley Burn Rate Startup Stock Options 246

Startup Professionals Musings

JANUARY 4, 2011

Stock options, if you get them, won’t help you pay the mortgage for a least a couple of years, and the value then is totally unpredictable. One family partner works for a startup, and the other sticks with a large enterprise company like Intel, HP, Apple, IBM, or Fujitsu. Visit venture capital websites.

Silicon Valley 227

Silicon Valley Burn Rate Startup Stock Options 227

Both Sides of the Table

MARCH 21, 2010

I make exceptions for companies with proper venture capital funds that are mostly autonomous like Comcast, Disney (Steamboat) and Intel Capital – all of which are great funds. A “warrant&# is a right, but not an obligation for a company to buy stock in your company at a future date and at a pre-agreed price.

Warrant 298

Warrant Dilution Startup Stock Options 298

Startup Company Lawyer

MARCH 12, 2009

Although LLCs may be attractive to businesses financed by a small number of corporate investors and/or individuals, they are often not suitable for companies planning to attract venture capital or pursue multiple rounds of funding. Such inflexible features are typically unattractive to venture investors. Employee Compensation.

LLC 61

LLC Stock Options Preferred Stock Stock 61

www.thedailymuse.com

SEPTEMBER 18, 2012

You don’t want a senior partner preparing documents for an incorporation, nor do you want a third-year lawyer negotiating with a seasoned venture capitalist for you. The considerations that go into incorporating a restaurant, say, can be very different from the considerations for incorporating a software company. hour increments.

Hiring 56

Hiring LLC Intellectual Property Private Equity 56

Both Sides of the Table

NOVEMBER 4, 2009

If you never raise another round of venture capital (a big if) and if your company is sold for the normal venture exit ($50 million on average for 200 or so annually that get sold) then what is your stake? Stock options are the icing on the cake. Don’t join for the options.&#.

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Stock Options Stock Liquidation Preference Option Pool 418

Scalable Startup

AUGUST 9, 2018

There are so many Facebook/Google/Apple multi-millionaires who receive new stock options every quarter, often a few hundred thousand dollars every quarter, that feel they should put something back into the system, plus they like the idea of being an investor. They’re betting on you.

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

www.inc.com

SEPTEMBER 24, 2011

"I advise my clients that you offer stock only after youve searched your heart and soul and cant come up with a way to pay with anything else," says Thomas H. Durkin , managing partner with the Boston -based law firm Lucash, Gesmer & Updegrove LLP. Chip Morse , cofounder and partner with Morse, Barnes-Brown & Pendleton P.C.,

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40

Both Sides of the Table

MAY 23, 2010

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. VC’s money comes from mostly institutional investors called LPs (limited partners). This bonus is often in the form of either a discount (e.g.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Both Sides of the Table

APRIL 27, 2010

My company had raised venture capital in April 2001 but we were told that there may never be any more coming. I learned how to retain employees when stock options were no longer a real currency. So how did I come to work in the world of venture capital? I knew my partners for 8 years before joining GRP.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

infochachkie.com

SEPTEMBER 24, 2011

Basing a consultant’s compensation on the incremental revenue they generate is a great example of a deal that is on The Fringe (for other creative approaches to partnering, see Agreements on The Fringe). The final straw came when I asked the latest 25-year old a simple ‘yes / no’ question related to stock options. Cheers, Brian.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Gust

NOVEMBER 4, 2011

This discussion expands on my Quora answer to a specific question: “ Why were the stock options of MySpace employees worthless even though the company was sold to News Corporation for hundreds of millions? ” The complete story includes a startup-within-a-startup, investments and exits by two VC firms, and some genuine corporate drama.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Austin Startup

SEPTEMBER 19, 2017

In other cases, they may come from your channel partners or elsewhere. As for compensation, stock options in the range of 0.1% The target market advisory board should consist of 2–4 industry veterans who have connections to C-level execs and VPs in your target market.

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Advisory Board Sweat Equity Marketing Vertical 48

VC Adventure

DECEMBER 4, 2009

This conclusion is backed up by the National Venture Capital Association which tracks the impact of private companies who receive institutional venture financing. You can read the recent NVCA report on the impact of venture capital on the overall economy here (the quick take-away is that this impact is extremely significant).

Accredited Investor 49

Accredited Investor Venture Capital Stock Options Government 49

thestartuplawyer.com

FEBRUARY 24, 2010

Your Business Partner Closer,&# was a reformatted version of a blog post titled “Keep Your Startup Co-Founder Closer&# which appeared in Ryan Roberts PC’s blog for startups and entrepreneurs, The Startup [.] He obviously never launched a startup and got shafted by a co-founder. Leave a Reply Click here to cancel reply.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Both Sides of the Table

DECEMBER 2, 2010

I always encourage people to allocate a few extra stock options to those that join super early when your company is risky and they just believed in you. You can also spend time with a newer startup helping them navigate the world of product management, venture capital or team building. I won’t let you down.

Europe 352

Europe France San Francisco Chicago 352

Cracking the Code

OCTOBER 12, 2012

If that company had had to comply with the proposed regulation, its founding partners would have faced the following dilemma: either forfeit 60% of their gains in tax, or … ask Electronic Arts to come back later. It enjoyed explosive growth, created 200 jobs in two years, and was acquired in 2009 by the American giant Electronic Arts.

France 71

France Europe Capital Gains Dilution 71

YoungUpstarts

AUGUST 17, 2011

Schools can’t give stock options, but they can give praise and non-economic rewards to those who uncover a new idea that works. Michael Feuer cofounded OfficeMax in 1988 starting with one store and $20,000 of his own money, a partner, and a small group of investors. Know when it’s time to pull the plug.

Cofounder 222

Cofounder Programming Leadership Ohio 222

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

But assuming it’s a fair exit, a venture capitalist, and I’m explicitly not saying angel because we could talk about angel and they’re sort of special so that might work out. Edwin: No, I do think, and I realize that very much, that if I were to take venture capital, the whole game changes.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

Pascal's View

JULY 8, 2009

Stock options – once the great wealth builder for employees in start-up companies – have had much of their value striped by regulatory changes. For those that are here, we are increasing the regulatory hurdles associated with building successful businesses while increasing the taxes associated investments make in long term innovation.

America 28

America United States Entrepreneur Stock Options 28

Board Effect

MAY 10, 2019

There’s the owner—maybe a partner or two—but unless employees are offered equity from the get-go, there’s typically not a whole lot of dilution. Most businesses prefer to keep this list as specific as possible; for example, listing names as they appear on the company’s stock certificates. Why do cap tables matter?

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40

www.paulgraham.com

APRIL 28, 2010

Ifyour competitors offer employees stock options that might make themrich, while you make it clear you plan to stay private, yourcompetitors will get the best people. Venture Capital Funds VC firms are like seed firms in that theyre actual companies, butthey invest other peoples money, and much larger amounts of it.VC

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

techcrunch.com

OCTOBER 23, 2010

The timing is perfect, there is more than a little overlap with Vivek Wadhwa’s guest post on venture capital earlier today. In Meebo’s case, for example, I was lucky enough to partner up with Elaine and Sandy. No looking for partnerships (who’s going to partner with you anyway?). No phone system. No legal muck.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

Diego Basch

SEPTEMBER 25, 2012

Typical first-time SV entrepreneurs are not millionaires, so let’s say you have 100k in the bank (maybe you’ve made some money from stock options). You are the founder and CEO of GulpMonger, three years out of college, fresh out of Y Combinator. It many cases it means to not have to work for a living.

Silicon Valley 73

Silicon Valley Entrepreneur Stock Options Vesting 73

Austin Startup

SEPTEMBER 9, 2018

the press, current and potential consultants, potential employees (to be clear, all current employees are in the arena with you), current and potential clients, current and potential partners, current and potential investors, etc. Your current investors are already on the journey with you. Of course, your current clients are too?—?but

Advisory Board 48

Advisory Board Balance Sheet Stock Options Email 48