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Did they really need a Startup CTO or Developer or both? Did they have a Weak DevelopmentTeam ? Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). He needed some kind of CTO and as well Developers. There are cases where I will do equity-only deals.
Even with these, you will have paper-tested your MVP, but the reality is that customers will not be able to assess the value to them until they actually use it. If you are on the lower complexity end, the key is defining small chunks of work that can be done quickly by a developer. Review the code being built.
Many of the founders of these companies are surprised to learn that I'm willing to review what they are doing (maybe an hour) and get on the phone for an hour with them and provide free advice. Maybe you are wondering if you have a Weak DevelopmentTeam ? Do you have a Startup Founder Developer Gap ?
Conduct a post-action review. If the company has employees, by implicating the entire team, each member can obtain a clear view of the process and contribute to future fixes and enhancements. Assess both the short- and long-term financial impact. While the loss may be a hard pill to swallow, many benefits can arise.
Many of the founders of these companies are surprised to learn that I'm willing to review what they are doing (maybe an hour) and get on the phone for an hour with them and provide free advice. Maybe you are wondering if you have a Weak DevelopmentTeam ? Do you have a Startup Founder Developer Gap ?
As a rule, you need to review your burn rate every month, and manage it every day. The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. The components are simple - expenses and income. Great strategy.
As a rule, you need to review your burn rate every month, and manage it every day. The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. Investors assume it will only go up with more funding. Great strategy.
I wrote the post below for Crowdcube , one of the UK’s leading equity crowdfuding sites. Two developments have changed the face of startup investing in the UK in recent years. The first development is increased capital efficiency. It went up on their blog yesterday. _.
Way back in the early eighties, I was privileged to be part of the original IBM PC developmentteam, led by Don Estridge. The burn rate was extremely high, with no one working for equity or deferred compensation. Internal legal reviews and required new processes were slow to finalize.
As a rule, you need to review your burn rate every month, and manage it every day. The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. Investors assume it will only go up with more funding. Great strategy.
There are four general buckets for engaging with a corporate like Google: Funding – this consists of cash investment for equity. This most likely involves a combination of an operational team (cloud, enterprise, commerce, etc) and the corporate developmentteam, led by Don Harrison.
When our companies started switching from ‘waterfall’ to ‘agile’ development methodologies we went from having detailed pictures of how products were going to evolve (albeit with delivery risk) to little visibility of what new features would emerge and when.
Investors use a consulting CTO for technical duediligence. And finally, you may be able to avoid diluting your equity. Preserve your equity by using a consulting CTO to ramp up your company before securing early-stage financing and hiring a permanent technology partner. Why are consulting CTOs so scarce?
Breakups are hard If you’re going to fall out with your co-founder, do it early, recover the equity into the option pool to keep the company going, and recruit someone else great to fill the missing slot. Engineer heavy startups are common now, so doubling or tripling your developmentteam at the outset is incredible.
In later posts I’ll get more specific on how to figure out if the folks you’re meeting are the right people to work with, and also how to deal with issues like splitting equity and paying yourselves before raising funding. Honestly assess your own strengths and weaknesses thoroughly. And how do you do this?
They log in to translate the documents, one at a time, marking each finished when done, which sends the file back to the company for review.” Also important: Only go for providers who have great reviews from many past customers. Decline bids from providers without many great reviews. The translator rejects or approves.
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