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I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." I'll get to service providers in a later post. Which means n = (i - 1)/i.
I was just asked about a particular startup situation (seed stage, CMO hire, non-founder) and particularly what compensation and equity is appropriate. Quick & Dirty How-To: EmployeeStock Option Allocations Seed Stage Compensation What are typical compensation numbers?
I had a recent email dialog with the founder of a company looking for a CTO for their startup. Did they really need a Startup CTO or Developer or both? And do I fit as a Part-TimeCTO , Technology Advisor , CTO Founder , Acting CTO ? He needed some kind of CTO and as well Developers.
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. As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while.
To turn your company’s stock into cash, you engaged a top-notch investment bank (Morgan Stanley, Goldman Sachs) and/or their Silicon Valley compatriots (Hambrecht & Quist, Montgomery Securities, Robertson Stephens). Hire a CEO to Go Public. If the founder was lucky, he got to stay as chairman or CTO.
At one of our initial board meetings we had agreed on the general principle of an advisory board and put together an overall stock budget to compensate advisors. One of the first potential advisors I reached out to was someone who 10 years earlier tried to hire me as the VP of Marketing of his new division at Sun Microsystems.
He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. In his spare time he raised nearly $30 million. Rob is one of the most driven and successful CEOs I work with.
Great content again in September that meets at the intersection of startups, technology, product and being a Startup CTO. 8220; His three things (worth reading his whole post anyway) are set vision/strategy and communicate broadly, recruit/hire/retain top talent, and make sure there’s enough cash in the bank. It’s great advice.
They were referring to non-founder engineers, most commonly the first hire for technology businesses. From the perspective of my outside friends, why are employees that so clearly impact the growth trajectory of a company look like they’re getting screwed? A reason might be that negotiation techniques are not a part of their training.
How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? Equity for Employees. Office Space. Virtual Office.
Hire everyone you need as an employee. 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. Sometimes I’m wrong.
Growth, Profitability, and the Stock Price. Stock buybacks. What does a CTO do? Growth, Profitability, and the Stock Price. What does a CTO do? What does a CTO (Chief Technology Officer) do in a high-tech company? So what is the CTO job? This is where you should see the CTO. What goes around.
Employee Equity: How Much? The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula.
She was the former CTO of Cisco Systems from 1998-2000, and is on the boards of Disney and Packet Design and was a board member at Sun and FedEx for many years. Precept Software, another of her startups, was bought by Cisco just prior to the company's stock price run-up, "so we had a great outcome for our investors.".
Define how you want to motivate your employees every day to produce high-quality and industry-leading results. They should be able to hire great designers to help build a better product. This person needs to be incredibly skilled in engineering, and should ideally be an experienced CTO. This is totally unique. An engineer.
Bootstrapper Pass - Offers the same benefits as the Silver Pass, but brings the cost of the conference down to $350 for people who otherwise wouldn’t be able to attend (think: fledgling solopreneurs, employees at very young startups, and small non-profits). 31 ( limited to the first 200 Gold Passholders.) Apply for a Bootstrapper Pass here.
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? This answer. Please specify the necessary improvements.
Determining how to value sweat equity is key when negotiating with investors and employees. When you're getting started, sweat equity is often a critical component of your negotiating leverage with co-founders, early stage employees and others who aren't paid market wages to help you grow your business. BY Asheesh Advani. |.
intrapreneurs, e.g., the employee of GE who is tasked with launching a new business. In those cases, the incentives for the founders and early employees are extraordinarily hard to align long term. Help identify key technologist and product hires to transition in-house (week 13 onward, however this can take 1 year).
Joe Betts-LaCroix – CTO, OQO. Hiring and Firing. July 14th, 2009: Implement hiring policies and practices. Description: When to hire and when to fire? How to hire the best vendors for the best rates. Description: How to set-up the right company structure to attract great employees and investors.
We hired three guys from that batch and paid them in iPhones. Doubtful we’d have access to such a rich employee pool any other way. Lots of the attendees will be wearing suits for the first time––and hating it. Treat everyone you hire like a co-founder. It builds trust and earns buy-in from the people you hire.
If you don’t yet have a team yet, list the roles you need to hire for. If you don’t yet have a team yet, list the roles you need to hire for. Delaware law gives preferred stock investors of a corporation certain voting rights and control over the corporation. The business model. Pick a name for your business.
Inevitably, the excuses begin: I need to hire people to build the product. 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. Like I said, forget everything else and just get your product out the door.
Update: The end is near, Expensify is hiring a.NET programmer! Or, rather, more offensively to Facebook and Google employees, less offensive to.NET developers, though the underlying message is the same.). As you might know, we’re hiring the best programmers in the world. Expensify Blog. Some additional comments at the end.
As a company grows, corporate leaders must become fixated on the stock price, internal politics and compliance. Similarly, SuppliedShop.com allowed small retailers — lone-person, part-time and stay-at-home-mom operations — to buy products directly from factories risk-free, even if they could only invest a few hundred dollars on inventory.
Increasingly powerful systems cracked open the door for real-time predictive analytics. A world of real-time predictions. For some, the age of “real-time” predictive analytics is here. A simple predictive analysis is your arrival time in Waze. Slow adoption but soaring interest. Data, data, and data.
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