Remove Employee Remove Sales Remove Stock Options
article thumbnail

Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

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. Why Startups Offer Stock Options. This “we’re all in it together” kept founders and employees aligned on incentives. Here’s why.

article thumbnail

The Long-Term Value of Loyalty

Both Sides of the Table

Moving on … My second post was directed at employees. If you’ve done it for a long time then I usually advise hiring managers to hire you as contractors and not full-time employees. No employees wanted to join startups – they were all looking for stable jobs. It’s a subjective topic.

Insiders

Sign Up for our Newsletter

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

article thumbnail

8 Tips To Get the Most Out of Your Investors and Board

Both Sides of the Table

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. Growth like this, this early in a company’s lifecycle rarely happens. He is very pleasant when he calls and writes.

article thumbnail

How to Work with Lawyers at a Startup

Both Sides of the Table

Forget to get around to setting up that Employee Stock Option Plan and want to be able to give the early guys their options at a low strike price? Consider it a sales & marketing expense for them. They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee.

article thumbnail

Start-ups are all Naked in the Mirror

Both Sides of the Table

Our sales forecasts were revised downward – many times. And I made a version of this company-wide speech to our employees: “Look. Don’t overset expectations for your employees on the way in. We do hand out stock options. Our business development discussions took longer than planned.

PR 331
article thumbnail

What Do Boards Actually Do?

Both Sides of the Table

As a starting point the board is intended to have legal and financial responsibilities to a few key constituencies: shareholders, debt holders, creditors, employees, government and major parties with whom the business operates. ICOs certainly have a place in startup financing.

Cofounder 217
article thumbnail

How to Discuss Stock Options with Your Team

Both Sides of the Table

Options are gravy - I lived through the first dot com era where we used stock options as a recruiting tool. We set our sites on our IPO price and then worked back to our current valuation and showed potential employees what we thought they could earn (with all legal caveats) if the company was successful.