Scott Edward Walker

SEPTEMBER 28, 2011

Question My co-founders and I are working on a cool new site, and we’ll be ready to launch in a few weeks. Otherwise, if one of the founders quits after a few months, he would take all of his shares with him. In short, this is a nightmare scenario – particularly if there is bad blood with the other co-founders. IP Ownership.

Vesting 89

Vesting Software Review IP Intellectual Property 89

Steve Blank

APRIL 10, 2019

VC’s have just changed the ~50-year old social contract with startup employees. For most startup employee’s startup stock options are now a bad deal. As Venture Capital emerged as an industry in the mid 1970’s, investors in venture-funded startups began to give stock options to all their employees.

Stock Options 335

Stock Options Stock Vesting Common Stock 335

Scott Edward Walker

NOVEMBER 22, 2015

Below are the three most common IP-related mistakes that startups make — the first of which I discuss in this brief video with Jason Calacanis. Startups must ensure that none of the founders’ prior employers have any rights to the venture’s IP because a founder was working on the venture while previously employed.

IP 40

IP Software Review Due Diligence Intellectual Property 40

Startup Company Lawyer

MAY 4, 2009

Adeo Ressi , the founding member of TheFunded , recently announced the establishment of TheFunded Founder Institute. The Founder Institute helps founders launch innovative companies by providing training, services, and company-building assignments, such as incorporating the business, filing provision patents, and setting up books and records.

Founder 28

Founder Warrant San Francisco Intellectual Property 28

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? I know how to structure around that to protect the founders from getting screwed on a multiple liquidation preference. How will you price the next round? Your A round? Him: On metrics. What proof points? EBITDA multiple?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

www.inc.com

SEPTEMBER 24, 2011

Employee Benefits. Last spring, Dave Graham , founder of software consulting firm Arizona Bay, learned that a major client, Jumpstart Automotive Media, had been acquired for more than $80 million. Jumpstart wasnt much at the time, just four employees working from home offices. Financing A Small Business. Business Taxes.

Arizona 40

Arizona Equity Iowa Venture Capital 40

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). Offer letters for employees.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Gust

SEPTEMBER 17, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? I know how to structure around that to protect the founders from getting screwed on a multiple liquidation preference. How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

blog.simeonov.com

FEBRUARY 22, 2010

Simeon, can you tell us how you structure ownership and control so you can fire your co-founders if necessary? The first part will dispel some myths, address the lifecycle of founder agreements and the key compensation and control parameters in them. Let’s start by dispelling some myths: There is a standard founder agreement.

Founder 44

Founder Vesting Agile Startup 44

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model. These include: ·       Vesting of Founder Stock. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

ReadWriteStart

JANUARY 28, 2022

The market regards equity as an ownership “share” in a corporation’s income revenue stream. Common stock. The holding of common stock in a company indicates ownership in the corporation. Investors of common stock are eligible for : The choice of the Board of Directors.

Valuation 108

Valuation Equity Warrant Common Stock 108

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. First, if you did not understand how radically the fundraising environment might change, then there is no chance that your employees would have understood it.

Down Round 73

Down Round Marketing Preferred Stock Post-Money Valuation 73

Growthink Blog

MAY 10, 2012

Put everything else on your "wish list" to buy with revenues from sales or additional financing. Take the founder of Wrigley's chewing gum, who began selling baking powder and soap door-to-door and giving away gum as a bonus before discovering people wanted it a lot more than soap.

Equity 88

Equity Mezzanine Later Stage Venture Capital 88

Gust

MAY 24, 2012

Some commentators have suggested this is the wave of the future, signifying a shift in the balance of power from investors to founders of the relatively small, elite group of growth companies that make it to public markets. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159

IPO Equity Common Stock Stock 159

Up and Running

NOVEMBER 23, 2010

But, tragically, 3 years after their apex, this firm sold for less than their annual revenue, laid off nearly the entire staff, and left common stock shareholders, my friends included, with nothing. A CEO, more so than any other employee, needs to live the company’s culture. What happened?

Common Stock 63

Common Stock Stock Options Stock Cofounder 63

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. First, if you did not understand how radically the fundraising environment might change, then there is no chance that your employees would have understood it.

Marketing 36

Marketing Preferred Stock Post-Money Valuation Down Round 36

Up and Running

SEPTEMBER 20, 2021

Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors. Founders can apply the information to instantly ascertain what percentage of the startup they have to propose a new investor. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

www.paulgraham.com

APRIL 28, 2010

I think it would help founders to understand funding better—notjust the mechanics of it, but what investors are thinking. And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. There never has to be atime when you have no revenues.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76