Ben's Blog

APRIL 28, 2010

In this post, I describe why we prefer to fund companies whose founder will run the company as its CEO. As we looked at the history of great technology companies, we discovered that founders ran an overwhelming majority of them for a very long time, including: Acer—Stan Shih. Siebel—Tom Siebel. Sony—Akio Morita. Sun—Scott McNeely.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Agile VC

JUNE 5, 2011

Even for those who don’t care to dive into the numbers, it’s worth a quick glance because co-founder/CEO Andrew Mason wrote a letter which forms the preamble of the full document. and again only a portion of these subscribers will ultimately buy a Groupon, so the cost to acquire a true customer is higher than that.

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North America Chicago Boston Silicon Valley 100

Up and Running

MARCH 7, 2018

On average, it costs nearly three times an employee’s salary to replace them. This cost includes recruitment, lost productivity, and lost opportunity. As a founder, know that it’s O.K. As a founder, reach out to your professional connections for advice on what has worked in the past for them as far as training.

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Employee Startup Salary Hiring 91

www.joelonsoftware.com

MARCH 24, 2010

However, we will have: Cost of living adjustments for different markets. As the company grows, the initial package of stock options offered to new hires will be lower and lower. At any given time, stock option awards are equal based on level. Once a year well grant people more stock options.

Software Review 48

Software Review Stock Options Salary Technical Review 48

Both Sides of the Table

AUGUST 18, 2009

Yesterday I wrote a blog post ( here ) in which I urged people to not have too many founders. These situations are only compounded if you have 3 or more founders. I know that many people reading this will be in companies with 3+ founders and aren’t having any friction. They agreed to all be co-founders.

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Founder Cofounder Equity Stock Options 251

YoungUpstarts

JULY 17, 2020

by Juan Pablo Segura, President and Co-Founder of Babyscripts. The first step in any economic crisis is to evaluate your spending channels, and determine where you can cut costs. If possible, offering stock options in lieu of raises or to counteract pay cuts is another way to build security.

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Startup Wisconsin Stock Options Dividend 287

Austin Startup

NOVEMBER 29, 2017

Tim O’Reilly, Founder at O’Reilly Media and promoter of open source and Web 2.0 Let’s have a look at what early stage founders can expect in terms of oxygen. Partly as a result of the relatively low tax burden, the overall cost level is an order of magnitude lower than in the coastal tech hubs.

Early Stage 48

Early Stage Austin Silicon Valley Texas 48

Startup Lessons Learned

SEPTEMBER 8, 2009

That is just currently a full personal money sucking process, as you're taxed on income and have no business breaks yet, besides supplies, the majority of costs to start up a business have no tax advantages to creating a start up. Support the Startup Founders Visa with a tweet Testing the new Disqus comment system Gov 2.0

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DC Washington San Francisco SBIR 90

YoungUpstarts

OCTOBER 24, 2017

There will be additional filing and operation costs for these entities, due to tax, accounting and legal issues. Converting will come at a higher cost. Before you even get the business off the ground, it’s important to ensure that you and the co-founders (if any) agree on everything. Stock Option documentation.

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LLC Startup Stock Options Cofounder 168

venturehacks.com

MARCH 21, 2008

Advisor compensation Whether you’re hiring a normal advisor or super advisor: Advisory shares are usually issued as common stock options. The options typically vest monthly over 1-2 years with 100% single-trigger acceleration and no cliff. The opportunity cost is probably too high. Learn more.

Advisory Board 44

Advisory Board Cap Table Vesting Equity 44

www.quora.com

SEPTEMBER 22, 2011

Type to Add and Search Questions; Search Topics and People Startups Startup Compensation Entrepreneurship Compensation Stock Options Major Internet Companies Silicon Valley Why is there such a large founder to early employee equity drop-off? The real question here is: why is it fair for founders to get so much more?

Equity 40

Equity Employee Founder Cofounder 40

www.inc.com

SEPTEMBER 24, 2011

Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. That cost him accounting fees, legal fees, and time because the financing round couldnt close until the arrangements were formalized. based in Waltham, Mass.

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Fractional CTO Equity Iowa Technical Cofounder 40

Both Sides of the Table

MAY 10, 2015

I often speak about co-founder fighting and how this ends in lawsuits but this has become much more prevalent. I’d encourage you to watch this quick 3-minute video with some views on what I call “ The Co-Founder Mythology ” that is perpetuated in Silicon Valley. Lawsuits are on the rise.

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Vesting Cofounder IP Stock Options 150

infochachkie.com

SEPTEMBER 24, 2011

For instance, many a BDC CEO has initiated a consultant to study cost cutting issues before announcing a significant layoff. Unlike employee training costs, which can typically be spread over years of service, the relative return from training a consultant is modest and pricey. John is a CPA and holds an M.B.A. from the Wharton School.

Equity 40

Equity Silicon Valley Cofounder PR 40

Gust

OCTOBER 11, 2012

While you will definitely need to be a corporate entity before you can accept funding from any investor (or issue stock options to any employees), the specific corporate status of the venture at this stage is much less important to investors than its functional status.

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Delaware Stock Options Cofounder Stock 122

The Startup Magazine

JUNE 1, 2023

By Daniel Sokolovksy, Co-Founder and CEO, WARP and Troy Lester, Co-Founder and CRO, WARP The dissolution of Silicon Valley Bank (SVB) was more than just a bank collapse, it was a reality check for both startups and the VCs that fund them. As a founder, ask yourself – does your business actually warrant VC funding?

Early Stage 145

Early Stage Los Angeles Silicon Valley Cofounder 145

Scalable Startup

AUGUST 9, 2018

In their quest for sustainable growth, the elusive dream for most first time founders is that first funding. This can either come from the founder(s) own bank account or from outside investors. At this stage you’re essentially selling yourself and your cofounders. One of the easiest mistake to fix is timing.

Technical Cofounder 20

Technical Cofounder Silicon Valley Early Stage Cofounder 20

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.”)

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

VC Cafe

SEPTEMBER 6, 2011

Are your costs per acquisition going up or down with scale? Management team that sounds and looks like they can execute the plan – if you didn’t finish building the team yet, make sure you have at least one co-founder with complementary skills. Bottom up is better than top down projections (i.e.

Startup 133

Startup Cofounder Warrant Stock Options 133

ReadWriteStart

JULY 14, 2011

Paul Palmieri, Co-Founder and CEO of mobile advertising service Millennial Media just gave a really valuable talk at the International Startup Festival in Montreal titled "Investing in Your Influencers." These are people with whom you can share some type of value, but not tangible value like stock options or payment.

Advisory Board 135

Advisory Board Balance Sheet Silicon Valley Cofounder 135

The Startup Magazine

AUGUST 6, 2021

You can search for co-founders who will contribute with capital, or skills, and share profits and equity with them. If your vision is powerful enough, you can make up for this by offering recruits stock options. For instance, in many parts of the world, WhatsApp is the default messaging service.

Limited Liability Company 167

Limited Liability Company Silicon Valley Business Model Stock Options 167

A Smart Bear: Startups and Marketing for Geeks

JULY 7, 2016

When investors interrogate founders, these interrogatives arise, but with a twist: Adding the word “why” in front of each. But also you de-risk by aligning the solution to the founder’s existing abilities, for example in using whatever language/framework the founders are already adept in. When → Why now?

San Francisco 170

San Francisco Startup Framework Azure 170

ReadWriteStart

JUNE 15, 2012

While our startup founders disagreed on many details - particularly the proper role of equity - a common theme did emerge: Developer rock stars know what they’re looking for and what they want - so the onus is on the founder to communicate why his or her tech startup is special: 1. a paycheck plus bonuses or stock options).

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Developer Equity Ruby Cofounder 130

Growthink Blog

APRIL 7, 2011

Yes, the Ted Leonsis who co-founded AOL and now owns the NHL's Washington Capitals and the NBA's Washington Wizards (among lots of other things). While Groupon's founder Andrew Mason thought this was a cool idea, it never really caught on, and the company stagnated. Recently, Ted Leonsis told me an incredible story.

Washington 95

Washington Stock Options Valuation Angel Investor 95

Up and Running

JUNE 19, 2015

Here’s our first one with Sabrina Parsons and Alex Blumberg (13 minutes): Listen to Episode 5: Show notes: Alex Blumberg Talks About His Life as Founder of Gimlet Media (feat. with Levi King, Founder and CEO of Creditera) – (12:56). Sabrina Parsons) – (:31). Learn more about Gimlet Media. He knew who I am, right?

Cloud 60

Cloud Silicon Valley Small Business Media 60

ReadWriteStart

JANUARY 28, 2022

In the case of a warrant, the expiration date is the final day on which it can be converted into common stock. Considering that a warrant is often issued to decrease the cost of a debt issuer, the expiration period is typically more than two years after the warrant is first issued. Equity for Co-founders.

Valuation 108

Valuation Equity Warrant Common Stock 108

Scott Edward Walker

APRIL 9, 2012

As a result, the pendulum has swung dramatically in the founders’ favor, and the issuance of convertible notes for seed financing has never been more prolific. ii) why are convertible notes issued instead of shares of common or preferred stock? In addition, the issuance of shares of common stock creates three potential problems.

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

venturehacks.com

OCTOBER 21, 2010

If you don’t keep your eyes on the option pool, your investors will slip it in the pre-money and cost you millions of dollars of effective valuation. The option pool lowers your effective valuation. Do you mean the shares go to the founders? You are already compensated through your founder’s shares.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

www.copelandfirm.com

OCTOBER 21, 2010

Home About Fee Arrangements Location Referrals Testimonials Business Law HUB Certification Mergers & Acquisitions Startup Advice Intellectual Property Copyrights Trademarks Securities Law Debt and Bridge Financing Series A Startup Law Entity Formation Corporation LLC Series LLC RSS Founders Shares: How do you split them up?

Intellectual Property 40

Intellectual Property Founder Vesting Bridge Financing 40

Berkonomics

AUGUST 27, 2015

He has served as advisor to and member of numerous financial exchanges, and was the founder and CEO of Arthur Lipper Corporation and co-founder and Chairman of New York & Foreign Securities Corporation. Today he serves as Chairman of British Far East Holdings Ltd.

Intellectual Property 48

Intellectual Property Balance Sheet Stock Options Valuation 48

techcrunch.com

OCTOBER 23, 2010

One of the things I do as a founder of a later stage startup is to meet with early stage entrepreneurs to help them get their companies going. In later posts I’m going to get into more detail on specific topics like hiring, raising money, what types of ideas have the potential to get big, finding your founders, and the like.

Technical Review 84

Technical Review Cofounder Technical Cofounder Software Review 84

Ben's Blog

APRIL 7, 2021

But network effects tend to persist because the value of the network to its participants outweighs the costs. Corporate incentives: Fairchild Semiconductor in 1957 developed a broad-based equity incentive compensation program known as stock options. in the mid-1940s — derived from East Coast institutions.

Silicon Valley 36

Silicon Valley Non-Compete San Francisco Government 36