Remove Common Stock Remove Cost Remove Hiring
article thumbnail

Why Uber is The Revenge of the Founders

Steve Blank

Hire a CEO to Go Public. The VCs would hire a CEO with a track record who looked and acted like the type of CEO Wall Street bankers expected to see in large companies. The role of the independent member was typically to tell the founding CEO that the VCs were hiring a new CEO.). People had to actually pay you for your product.

Founder 281
article thumbnail

Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

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. And just to make sure you were in the company for at least a year, with most stock option plans, unless you stayed an entire year, you wouldn’t vest any stock.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

they now have 4x the stock and thus 4x the liquidation preferences (since each share has liquidation preferences on it). The alternative is to give investors 1,2 & 3 the exact same amount of preferred Series A stock and give investors 1 & 2 more common stock (which doesn't have liquidation preferences) to adjust for the discount.

Ratchet 354
article thumbnail

How to Form a Corporation

Up and Running

Having both will add cost, but they should also add significant peace of mind to your work throughout this process. In addition to those two types of hired help, you can get free guidance and support from a local SBDC consultant. Your choice here is to either hire an agent or be your own. Name your registered agent.

article thumbnail

How to Fund Your Startup Without Losing Control

Up and Running

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. That is to say, they’d want to be able to control costs and revenues at a high level. Capital investments are like gasoline on a startup business’s metaphorical fire.

article thumbnail

What’s a Fair 409A Discount?

VC Adventure

Most boards did some level of work to determine the FMV of a company’s stock but generally options were priced between 10% and 15% of a company’s then preferred price (because common equity sits behind preferred equity there is typically a discount applied to the FMV of common stock to account for this “overhang”).

article thumbnail

What is TheFunded Founder Institute?

Startup Company Lawyer

Startup companies consume resources intelligently, put people to work in efficient ways, and produce market driven products at lower costs. The application fee is $50, which only partially offsets costs associated with processing applications. Hiring and Firing. July 14th, 2009: Implement hiring policies and practices.

Founder 28