SoCal CTO

SEPTEMBER 27, 2011

I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups. Unlike the founders, the employees have to wait until their grants vest, working at a company no longer of their choosing for two years. Stock vests for 4 years. Same Value for Sweat Equity as Investment Dollars? Wait a second.

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Up and Running

JUNE 7, 2021

We have gotten used to treating one another as a means to our vested interests, thereby plaguing the very essential humanitarian value of mutual ethics, respect, love, and compassion. So obsessing over revenue rather than investing in a happy and productive work culture is actually a false economy. Begin with leadership.

Framework 191

Framework United States Employee Vesting 191

SoCal CTO

NOVEMBER 1, 2010

You should avoid spending your time here and instead focus on finding a way to generate revenue or to attract investors so that you can afford to hire someone. Sweat equity is also applicable for someone who is very interested in the subject that you are working on. What sweat equity is not good for is for people who you don’t know at all.

Technical Cofounder 241

Technical Cofounder CTO Hire Equity Sweat Equity 241

Scott Edward Walker

SEPTEMBER 28, 2011

Vesting Restrictions. The first deadly mistake relates to vesting restrictions. In addition, sometimes a portion of the shares will be deemed to be vested “up front” – meaning that they are not subject to vesting — particularly where a founder has made a significant contribution prior to the company’s incorporation.

Vesting 89

Vesting Software Review IP Intellectual Property 89

Startup Professionals Musings

APRIL 10, 2016

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. Look for examples of similar companies and revenue multiples achieved from acquirers. Calculate employee stock option values and vesting times, as well as salary.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

APRIL 8, 2015

If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation. Look for examples of similar companies and revenue multiples achieved from acquirers. Calculate employee stock option values and vesting times, as well as salary.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

FEBRUARY 27, 2016

Project your costs as diligently as your revenues. Keep all IP details close to the vest. Crowdfunding interest, by definition, is primarily from non-professional investors who are more focused on features and value, rather than the financials of your business. Several crowdfunding successes have failed as a business.

Non-disclosure Agreement 120

Non-disclosure Agreement Intellectual Property Technical Review Vesting 120

Steve Blank

MAY 19, 2015

I had lunch last week with Tom, the CEO of a startup that was quickly becoming a large company – last year’s revenue was $40M, this year likely to be $80M maybe even $100 million in ad revenue. to drive traffic to their site, which they then turned into ad revenue. Refactoring” organizational debt. the company had.

Technical Review 120

Technical Review Salary Early Stage Software Review 120

Both Sides of the Table

JUNE 18, 2015

And even this can’t stop their employees from fleeing after two years of vesting to move on to the next hot startup. Success often comes from doing a few things extraordinarily well and noticeably better than the competition and is measured in customer feedback, product engagement, growth in usage and ultimately in revenue growth.

Software Review 150

Software Review Turkey Portfolio Syndicate 150

NZ Entrepreneur

SEPTEMBER 29, 2021

Addressing real world problems, they thrive in uncertainty, generating new jobs and new revenue streams in new markets. This equity will vest over 2-3 years. It is our startup sector which will drive this innovative progress. Startup founders are our ambitious problem solvers. 0.75% for directors and 1-2% for the chair.

Technical Review 88

Technical Review Software Review New Zealand Due Diligence 88

Steve Blank

APRIL 10, 2019

Startup employees calculated that a) their hard work could change the odds and b) someday the stock options they were vesting might make them into millionaires. The stock trickled out over four years, as you would “vest” 1/48 th of the option each month. Essentially the company sells them the stock at zero cost, and they reverse vest.

Stock Options 333

Stock Options Stock Vesting Common Stock 333

SoCal CTO

MARCH 1, 2007

skip to main | skip to sidebar SoCal CTO Thursday, March 1, 2007 Entreprenuer Network Great post by Ben Kuo - The Importance of the “Network&# to Entrepreneurs - the informal connections between people in the technology industry here who have a vested interest in helping entrepreneurs take their companies to the next level.

Technical Cofounder 150

Technical Cofounder Networking Southern California Los Angeles 150

Scott Edward Walker

OCTOBER 19, 2020

Usually this is done as part of the founder’s Restricted Stock Purchase Agreement pursuant to which the IP is contributed to the startup as full or partial consideration for the shares of common stock issued to him in a tax-free transaction under Section 351 of the Internal Revenue Code.

IP 52

IP Software Review Founder Technical Review 52

Both Sides of the Table

OCTOBER 29, 2009

Many people have speculated a variety of revenue sources such as charging 3rd parties for their data, charging power users for their accounts, charging “verified users&# for their certified accounts, etc. And it is the most notable media darling not making any money so everyone is asking the question – how will they make money?

Technical Review 286

Technical Review Advertising Early Stage Internet 286

Duct Tape Marketing

OCTOBER 8, 2023

This approach lets businesses see exactly what they’re paying for and allows fractional CMOs to scale their revenue without necessarily increasing workload. It’s an approach that allows your revenue to scale up. Value-Based Pricing : Making a shift from hourly rates to value-based pricing can be game-changing.

Technical Review 74

Technical Review Retention Networking Leadership 74

Steve Blank

JULY 19, 2010

As a founder I fought with VC’s over vesting as they brought in a new CEO and walked me out the door. As a board member I negotiated with founding CEO’s over vesting when I thought it was their time to go. Yet the traditional vesting model ignores this. It’s time to rethink how we vest stock for founding CEOs.

Vesting 251

Vesting Liquidity Event Venture Capital Founder Vesting 251

Both Sides of the Table

NOVEMBER 22, 2009

When a content producer promotes an ad in-stream the revenue flows mostly to the person who published the content. I have a vested interest – not just due to an investment in Ad.ly Transparency, authenticity and quality are what matters – So should everybody be sending out loads of Tweet Ads? I assure you Ad.ly

Advertising 277

Advertising Technical Review Affiliate SEM 277

David Teten

MAY 7, 2019

As a VC, I’m interested in working with companies with large-scale revenue potential, and that’s the company we envision. We agree on an equity split, vesting, and initial compensation structure. The company has a long-term vision far beyond politics. We assume we’ll be structured as a traditional Delaware C corporation.

America 60

America Technical Review Advisory Board Due Diligence 60

David Teten

JULY 10, 2019

As a VC, I’m interested in working with companies with large-scale revenue potential, and that’s the company we envision. We agree on an equity split, vesting, and initial compensation structure. Q: Is this civic tech? A nonprofit? The company has a long-term vision far beyond working with advocacy organizations.

America 60

America Technical Review Advisory Board Due Diligence 60

ConversionXL

FEBRUARY 2, 2016

The individual who had executed the test had a vested interested in making sure that ‘A’ was the winner. When you hear a phrase like that, you know the person has a vested interest in making sure that the test shows a certain answer. See, this person’s incentive structure was based on A winning.

Vesting 48

Vesting Analytics Conversion Revenue 48

Both Sides of the Table

JULY 16, 2013

The company with no revenue and a $150k burn rate that raised $2.5 I often wonder why they didn’t find a way to bring in some revenue to cover costs. Newsflash – if you had $75k revenue / month you’d have 8 months cash left in stead of 4. I see this weekly. million and has 4 months cash left. Your VC is right.

Burn Rate 412

Burn Rate Dilution Revenue Valuation 412

Both Sides of the Table

NOVEMBER 4, 2010

And weirdly the buyers of this technology often have a vested interest in buying from the incumbent. You can’t take a $5 billion revenue stream and say “Fuck it. They’re going to eat our lunch anyways – let’s just cut our revenue to $1.5 There you have the innovator’s dilemma. Maybe I should.

Vesting 376

Vesting Framework Revenue Technology 376

YoungUpstarts

SEPTEMBER 13, 2017

This vested owner operator mentality gives the brand a dedication and commitment you only get from someone who has their own skin in the game. This combination of allowing vested talent and money to flow into a brand is the fuel that powers so many of these companies forward and into the lives of all of us consumers.

Customer 124

Customer Intellectual Property Vesting Business Model 124

www.avc.com

SEPTEMBER 22, 2011

The first bracket is the senior management team; the CFO, Chief Revenue Officer/VP Sales, Chief Marketing Officer/VP Marketing, Chief Product Officer/VP Product, CTO, VP Eng, Chief People Officer/VP HR, General Counsel, and anyone else on the senior team. There is no bracket  for the CEO and COO.

Equity 64

Equity Employee CTO Hire Fractional CTO 64

Steve Blank

JUNE 15, 2010

Will they tailor your vesting to your contribution as a founder? For a founder there’s nothing worse than searching for a business model day after day and then sitting in a board meeting with a VC who asks about some detail of year 5 of your revenue plan. Will The VC Tailor Your Vesting to Your Contribution?

Founder 231

Founder Vesting Later Stage Early Stage 231

YoungUpstarts

FEBRUARY 12, 2018

3) Is the pricing model vested in the success of the campaign (pay for performance, guaranteed placements, etc.). A good PR agency will help you discover new media opportunities that you never knew existed and could thus help recoup the investments in the form of greater brand awareness, more footfalls and higher revenues.

PR 133

PR Public Relations Vesting Database 133

Up and Running

AUGUST 10, 2016

That money will be paid out over time and rather than tie the entrepreneurs to a fixed monthly payment, the entrepreneurs will pay back a percent of revenue each month (starting after the 5th month). This type of debt crowdfunding is called revenue-based financing. Debt crowdfunding and small businesses.

Securities and Exchange Commission 60

Securities and Exchange Commission Vesting Equity Houston 60

Up and Running

MAY 3, 2012

This cheerleading often comes from those with vested interests, rather than from successful entrepreneurs who have successfully exited businesses and are looking to encourage the next generation. I am just a little jaded with the one-sided view that entrepreneurship is a panacea for all employment ills.

Entrepreneur 82

Entrepreneur Technical Review Silicon Valley Lean 82

Up and Running

JANUARY 5, 2021

You have a vested interest in making sure it works. It forces you to consolidate it into a business identity while considering the market you’re entering, potential competitors, and what expenses, revenue streams, and milestones you need to hit. Sorry, but you definitely have to pay taxes and report your revenue to the IRS.

Lean 146

Lean CPA Vesting Naming 146

Both Sides of the Table

MARCH 21, 2010

Plus, we’re all allured by the false sense that our contract with BigCo is going to “make us&# because once they start using us it will spread like wildfire and the revenue will flow in. They negotiate a “master agreement&# to work with your company with some maybe minimum guarantees in terms of revenue.

Warrant 298

Warrant Dilution Startup Stock Options 298

YoungUpstarts

FEBRUARY 17, 2020

Organizational leadership is rarely vested in the lone genius, a.k.a. There’s the example of one of my clients, a highly successful investment banker, who told me that nearly one-quarter of all his lifetime revenue had come through one law firm partner he had developed a close relationship with early in his career.

Artificial Inteligence 182

Artificial Inteligence Investment Bankers United States Vesting 182

The Next Web

OCTOBER 11, 2013

From brand licensing opportunities to renting digital space, there are some creative revenue opportunities out there if you just know where to look. As startups build their digital brand, reach and influence, they can extend their brands into new verticals and create new revenue-generating opportunities through brand licensing.

Balance Sheet 141

Balance Sheet Startup Advertising Vesting 141

Scott Edward Walker

NOVEMBER 2, 2011

Set-up vesting schedules for the founders (see post here ) and file 83(b) elections with the IRS (see #3 here ). Don’t issue stock options unless a proper option plan is in place and a valuation has been done in compliance with Section 409A of the Internal Revenue Code (see post here ).

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

ConversionXL

NOVEMBER 6, 2019

For this article, we asked 14 SaaS CEOs a simple question: “How much did you spend on your MVP before you had your first dollar of revenue?”. The MVP took around four months to build, during which time the company earned no revenue. They then spent the first year qualifying the product and testing out their revenue model.

Sweat Equity 78

Sweat Equity Software Review Vesting Cofounder 78

Startup Professionals Musings

AUGUST 3, 2015

If your startup has a proven revenue model, real customers and is ready to scale, approach the best investors even if it costs you more money. For new entrepreneurs looking for seed-stage help, concentrate on investors who know you or organizations with a vested interest. Temper your approach based on the stage of your startup.

Cost 120

Cost Angel Groups Due Diligence Silicon Valley 120

Gust

NOVEMBER 4, 2011

There were two distinct classes of employee equity (issued by Intermix and MySpace, respectively) with different valuation and vesting situations—and, most significantly, a $125 million valuation cap applied to the buyout of MySpace equity that was triggered by the acquisition of Intermix. Read on for a fuller explanation. of MySpace, Inc.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Both Sides of the Table

MAY 19, 2018

A detailed financial model that shows your anticipated revenue, costs and profits (Income Statement) as well as your balance sheet and cashflow statements. VCs (and LPs) have a vested interest in having more data, whether they want to invest in your company / firm or not. They aren’t doing this viciously?—?they

Cap Table 336

Cap Table Due Diligence Forecast Churn Rate 336