Both Sides of the Table

JANUARY 21, 2010

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? They usually ask for warrants (basically like a stock option) in exchange for taking a deferred fee. Shame about that pesky FAS 157 ruling.

Southern California 318

Southern California Silicon Valley IP Stock Options 318

Both Sides of the Table

AUGUST 28, 2009

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. It didn’t add up to me. How could they being doing so well in these difficult times? And then it dawned on me. I figured it out.

PR 331

PR Software Review Ireland Germany 331

Both Sides of the Table

SEPTEMBER 6, 2010

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.

Stock Options 294

Stock Options Stock Valuation Liquidation Preference 294

Both Sides of the Table

AUGUST 14, 2017

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

Cofounder Stock Options Equity Technical Review 217

Startup Professionals Musings

AUGUST 8, 2022

Here is my summary of the ten top creativity mistakes we both still see too often: Criticize any new idea or employee suggestion. An even better alternative could be stock options, linked to the long-term success of the company. A natural human reaction to any new idea is to point out potential weaknesses.

Stock Options 277

Stock Options Incubator Framework Stock 277

The Next Web

JUNE 15, 2012

From Silicon Valley to Peoria, Illinois, cash-strapped startups look for inventive way to finance their business – often handing out equity to employees, consultants, vendors, and other service providers. However, if you are thinking about compensating non-employees with equity, make sure to consider the following points: 1.

Equity 116

Equity Stock Options Vesting Stock 116

Startup Professionals Musings

FEBRUARY 18, 2023

One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Both Sides of the Table

DECEMBER 2, 2010

I always encourage people to allocate a few extra stock options to those that join super early when your company is risky and they just believed in you. You looked after me when I got there and treated me like a friend, not an employee. Sure, you can get away with less, but why? You didn’t have to give me the chance.

Europe 352

Europe France San Francisco Chicago 352

Startup Professionals Musings

OCTOBER 17, 2013

Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. Thus, stock doesn’t “pay the mortgage” today, so to speak. Thus, stock doesn’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Stock Options 224

Stock Options Stock Advisory Board Startup 224

Startup Professionals Musings

SEPTEMBER 22, 2012

Many employees forget that there isn’t even a market for stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. Thus, stock doesn’t “pay the mortgage” today, so to speak. Thus, stock doesn’t “pay the mortgage” today, so to speak. 7% Product Manager,2 -.3%

Stock Options 230

Stock Options Stock Advisory Board Startup 230

Startup Professionals Musings

NOVEMBER 6, 2019

Here is my summary of the ten top creativity mistakes we both still see too often: Criticize any new idea or employee suggestion. An even better alternative could be stock options, linked to the long-term success of the company. A natural human reaction to any new idea is to point out potential weaknesses.

Stock Options 236

Stock Options Incubator Framework Stock 236

thinkspace.com

SEPTEMBER 7, 2012

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. Strike price of options: meaningless.

Equity 62

Equity Employee Founder CTO Hire 62

Feld Thoughts

SEPTEMBER 2, 2011

As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while. They come up with two options: Hire Praveena as an employee and offer her stock options. Bring Praveena in as a founder and offer 10-20% of the company as stock.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

View from Seed

APRIL 27, 2020

Others are just starting out, but the financial safety net they thought they had from a spouse’s job or highly appreciated stock options has disappeared. Some are staring into the abyss and they know they are not going to get out. This is scary. It’s going to last a while, and it’s going to be incredibly hard.

Cofounder 194

Cofounder Software Review Portfolio Technical Review 194

The Next Web

OCTOBER 25, 2013

We spoke to some of the hottest startups to hear their experiences and tips for building a space that welcomes productivity, creativity, and keeps employees happy. Having fast or takeaway options when there’s no time for breaks is perfect,” Goshen says. Location, location, location. Open and cozy is the way to go.

San Francisco 167

San Francisco Design Product Startup 167

Up and Running

DECEMBER 1, 2015

If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. If however you are giving a “normal employee” an incentive stock option plan (more on that later), that’s entirely different. Finding great employees first.

Equity 60

Equity Employee Stock Options Vesting 60

Up and Running

MARCH 7, 2018

In my time, I learned a thing or two about the importance of preventing employee turnover. Aside from the time-consuming tasks of screening potential employees, interviewing, and re-hiring , losing and replacing employees is expensive. On average, it costs nearly three times an employee’s salary to replace them.

Employee 91

Employee Startup Salary Hiring 91

Steve Blank

OCTOBER 23, 2023

Most of her lessons were applicable to any government employee venturing out to the private sector. The same Emotional Quotient and approach that attracts investors will also attract excellent employees. Talk with multiple employees at the company. Below is the second of her three-part series. Read part one here.

Government 241

Government Advisory Board Salary Sales Cycle 241

YoungUpstarts

SEPTEMBER 27, 2017

In today’s start-up culture, it’s common for companies to offer employees the opportunity to own stock in the business. While most folks know the basic benefits of receiving stock, many employees are taken off guard by the tax implications that follow. Incentive Stock Option (ISO).

Stock Options 124

Stock Options Stock Capital Gains Vesting 124

Startup Professionals Musings

APRIL 8, 2015

One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

A Smart Bear: Startups and Marketing for Geeks

SEPTEMBER 29, 2015

The proper ambition for a tech entrepreneur should be to join the ranks of the great tech companies, or, at least, to create a profitable, independent company beloved by employees, customers, and shareholders. But what about the other employees? It is the nature of things to change; expecting otherwise is foolish.

Acquisition 120

Acquisition Technical Review Stock Options Employee 120

Startup Professionals Musings

APRIL 10, 2016

One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary. These questions are the key ones in every due diligence effort, always done by accredited investors, but almost never done by key employees and new partners.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Both Sides of the Table

APRIL 22, 2010

They make terrible employees. Why do job hoppers make such bad employees at startups? -. You’re going to have some great days when you hit it out of the ballpark. .&# That awesome gal you hired in engineering has job options and she knows it. And he has already vested 75% of his stock options at your company.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

YoungUpstarts

AUGUST 17, 2011

The “benevolent” part means doing the right thing for the right reasons, for all stakeholders — in education, this means your teachers and other school employees, your students, their parents, etc. Schools can’t give stock options, but they can give praise and non-economic rewards to those who uncover a new idea that works.

Cofounder 222

Cofounder Programming Leadership Ohio 222

Feld Thoughts

OCTOBER 8, 2013

My partner Dave and I took the number, made a list of all employees, and figured out how much we were going to give each of them. Figure out an equation for converting the bonus amount (in current cash terms) to stock option awards. At Feld Technologies, we had a very simple bonus program. We did this on an accrual basis.

Stock Options 146

Stock Options Technical Review Leadership Equity 146

Startup Professionals Musings

NOVEMBER 19, 2017

Here is my summary of the ten top creativity mistakes we both still see too often: Criticize any new idea or employee suggestion. An even better alternative could be stock options, linked to the long-term success of the company. A natural human reaction to any new idea is to point out potential weaknesses.

Stock Options 141

Stock Options Incubator Framework Stock 141

Up and Running

OCTOBER 19, 2021

The American job market has become even more competitive amid the pandemic-fueled “Great Resignation” — the number of employees quitting their jobs peaked in April 2021 and has remained high over the past few months. . 4 qualities to look for in a good startup employee. Enterprising employees will make do anyway.

Startup 127

Startup Salary Stock Options Employee 127

crowdSPRING Blog

OCTOBER 10, 2014

Stock option questions startup employees should ask | Business Insider – crowdspring.co/1n8lUje. The One, Life-Saving Change Workplaces Can Make For Their Employees – crowdspring.co/1r4ba0i. Why entrepreneurs should learn to say “I don’t know” more often – crowdspring.co/1pGXXeF.

Social Media 97

Social Media Small Business Design Media 97

Up and Running

SEPTEMBER 10, 2014

Stock Option. Self-employed people are permitted to stash away considerably more in their retirement accounts than employees and they are investing it anyway (usually in the stock market) so they may want to dedicate a portion of their portfolio to angel investments. Management Resumes and Organizational Chart.

Angel Investor 159

Angel Investor Technical Review Software Review Accredited Investor 159

Startup Professionals Musings

MARCH 21, 2016

The most effective and productive team members are positive, driven and want to be measured by results rather than hear work hours, perks or stock options. Motivation and commitment to results. Look for indications of these attributes in the resume and phone interviews. Personal character and chemistry.

Technical Review 120

Technical Review Stock Options Salary Hiring 120

Steve Blank

MARCH 16, 2016

Above all, don’t panic or demoralize your employees. It’s detrimental to tell your employees who have bought into the vision, mission and excitement of a startup to know that it’s for sale the day you start it. You need at least a 5x return to generate rewards for investors and employee stock options.

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Private Equity 120

Startup Professionals Musings

JULY 1, 2022

Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. Thus, options don’t “pay the mortgage” today, so to speak. Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3%

Stock Options 343

Stock Options Advisory Board Stock Startup 343

Feld Thoughts

JANUARY 17, 2013

I’ve never really understood why the majority of stock option refresh grants are stacked grants mid-way through the granting process. Assume you hire someone and grant them 10,000 options with monthly vesting of four years with a one year cliff. One thing, however, has always baffled me. Let me give an example.

Stock Options 135

Stock Options Stock Vesting Retention 135

Ben's Blog

OCTOBER 6, 2011

The Employee Lifecycle. The best way to approach management quality assurance is through the lens of the employee lifecycle. Do your managers and employees do an effective job of selling your company to prospective employees? Shortly after joining, how well does an employee understand what’s expected of her?

Management 64

Management Development Team Review Stock Options Technical Review 64

Startup Professionals Musings

MARCH 29, 2015

Many employees forget that there isn’t even a market for startup stock, until after the company has gone public, which hasn’t happened positively to many companies in the last few years. Thus, options don’t “pay the mortgage” today, so to speak. business entrepreneur shares startup stock options' Marty Zwilling.

Stock Options 120

Stock Options Stock Advisory Board Startup 120

Up and Running

JANUARY 4, 2017

Employee taxes. Hiring the right employees. This is why it’s important to find employees with potential. See Also: How to Hire Your First Employee. Approach them as you would an investor—what can this possibly over-qualified potential employee gain from joining your team? Travel expenses. Liability insurance.

Small Business 122

Small Business Social Media Stock Options Employee 122

Both Sides of the Table

MAY 2, 2015

And it turns out that employee reviews matter. Stock option top-ups after a few years are vital retention mechanisms. Didn’t have employees sign non-solicitation agreements? Didn’t have employees sign non-solicitation agreements? Yet being a buttoned up company requires all this. Shame on you.

Operations 150

Operations Metrics Early Stage Non-Compete 150