Remove CTO Hire Remove Dilution Remove Hiring
article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. For example, suppose you're just two founders and you want to hire an additional hacker who's so good you feel he'll increase the average outcome of the whole company by 20%. n = (1.2 - 1)/1.2 =.167. and we have 11.1%

article thumbnail

Introducing the Cap Table and Hiring the CTO

Feld Thoughts

This week they set out to create their cap table and hire a CTO. The vesting schedule protects each of the co-founders in case one gets hit by a bus or decides to drop the project after a short period of time. Jane and Dick want to bring in their friend Praveena as CTO, but they don’t know how to structure the compensation.

Cap Table 133
Insiders

Sign Up for our Newsletter

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

article thumbnail

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

You’ll need to hire and retain talen to grow your company. The more senior members you have (say you already have a CEO, CTO, VP marketing, VP Biz Dev, VP Products) then the less options you’ll need and vice versa. We spend a lot of time on them in the video but frankly we could have done a 3-hour session.

Valuation 405
article thumbnail

Further Thoughts on Startup Operations

Both Sides of the Table

One great solution I see is to hire an outstanding CFO who runs both. I usually encourage people to think about titles like, “Founder & CTO&# or “Founder & VP Marketing.&#. Focus the most senior person in the company’s time away from critical decision making on daily business. and my favorite].

article thumbnail

What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

They were referring to non-founder engineers, most commonly the first hire for technology businesses. Every time a startup raises capital, all common shareholders are diluted. In a CTO Salary and Equity trends report by Safire Partners, it finds non-founder equity compensation to settle out below 2 percent.

Engineer 129
article thumbnail

How many cofounders should your startup have?

The Next Web

Hire everyone you need as an employee. Too dilutive.”. After launching our Windows online backup service five years ago, our CTO pitched that we should focus on launching our Mac version next. At that time, Mac computers made up a mere 6 percent of the market and I argued we needed to focus on other areas. Too many.”.

Cofounder 143
article thumbnail

Building a High-Tech Startup Team

Business Plan Blog

Don’t hire people with skills and qualifications similar to yours. Hire based on functionality and avoid having too many C’s. This helps to better divide the work, make people accountable, and show investors just why each founder/hire is key to the organization. Hiring the right people at the right time is key.