SoCal CTO

SEPTEMBER 27, 2011

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%

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Feld Thoughts

SEPTEMBER 2, 2011

As Finance Fridays continues, we are introducing the concept of the Cap Table. 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.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

The Next Web

OCTOBER 7, 2013

They were referring to non-founder engineers, most commonly the first hire for technology businesses. Startup employees are granted common shares out of something called an option pool. Every time a startup raises capital, all common shareholders are diluted.

Engineer 129

Engineer Dilution Option Pool Vesting 129