Startup Professionals Musings

FEBRUARY 18, 2023

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. 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.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Gust

DECEMBER 15, 2013

Too many founders are convinced they “need” equity financing, for the wrong reasons, as outlined in the book and supplemented with a bit of my own experience: Need employees and professional services. Of course, every company needs these, in due time. Need expensive resources up front. General startup expenses are beyond your means.

Bootstrapping 183

Bootstrapping Sweat Equity Entrepreneur Technical Review 183

www.drowningamerican.com

JUNE 22, 2012

Next → How to Hire for Sweat Equity…. That being said the following is available to the right candidate: • 3-5% equity in the company (based on experience). • $50,000/year salary once we obtain funding (target: January, 2010). Pingback: How we Hire for Sweat Equity (Part 2)… « Drowning American.

Sweat Equity 40

Sweat Equity Equity Hiring Technical Review 40

www.drowningamerican.com

JUNE 22, 2012

Next → How we Hire for Sweat Equity (Part 2)… Posted on April 7, 2011 by Travis Biziorek. equity in the company. Ground floor opportunity and voice in shaping the company — you will be the third employee, your input and work will be invaluable. Musings on Life and the American Dream. Post navigation.

Sweat Equity 40

Sweat Equity Equity Hiring Technical Review 40

Startup Professionals Musings

APRIL 8, 2015

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. 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. Marty Zwilling.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

APRIL 10, 2016

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. 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.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

ConversionXL

NOVEMBER 6, 2019

Co-founder and CEO Kyle Wong, who was featured on Forbes’ 30 Under 30 List, says the company’s MVP was built using “sweat equity.” Ambit provides companies with conversational chatbots, which they refer to as “digital employees.”. Pixlee is a visual-marketing platform that helps companies connect with influencers.

Sweat Equity 78

Sweat Equity Software Review Vesting Cofounder 78

View from Seed

DECEMBER 4, 2014

You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division. Capital Investment & Sweat Equity.

Equity 315

Equity Founder Sweat Equity Cofounder 315

Startup Professionals Musings

DECEMBER 16, 2013

If you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask. You need to know this as a future employee, since it probably gates how long your new job will last. due diligence employee entrepreneur investor startup' Now you know.

Due Diligence 253

Due Diligence Sweat Equity Intellectual Property Burn Rate 253

Agile VC

DECEMBER 4, 2014

You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division. Both of these are typically reflected in the founder equity split.

Cofounder 255

Cofounder Equity Founder Sweat Equity 255

ConversionXL

NOVEMBER 6, 2019

Co-founder and CEO Kyle Wong, who was featured on Forbes’ 30 Under 30 List, says the company’s MVP was built using “sweat equity.” Ambit provides companies with conversational chatbots, which they refer to as “digital employees.”. Pixlee is a visual-marketing platform that helps companies connect with influencers.

Sweat Equity 50

Sweat Equity Software Review Vesting Cofounder 50

Startup Professionals Musings

AUGUST 20, 2010

If you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask. You need to know this as a future employee, since it probably gates how long your new job will last. Tags: entrepreneur startup investor due diligence employee. Now you know.

Due Diligence 229

Due Diligence Sweat Equity Intellectual Property Startup 229

Startup Professionals Musings

NOVEMBER 2, 2012

If you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask. You need to know this as a future employee, since it probably gates how long your new job will last. How much “skin” is already in the game? What’s in this deal for me? Now you know.

Due Diligence 244

Due Diligence Sweat Equity Burn Rate Intellectual Property 244

Startup Professionals Musings

SEPTEMBER 5, 2011

If you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask. You need to know this as a future employee, since it probably gates how long your new job will last. How much “skin” is already in the game? What’s in this deal for me? Now you know.

Due Diligence 237

Due Diligence Sweat Equity Intellectual Property Entrepreneur 237

Gust

DECEMBER 8, 2013

If you really want to impress a startup founder as a potential employee, or you want to be a smart investor, you need to know the right questions to ask. You need to know this as a future employee, since it probably gates how long your new job will last. Invested Interests due diligence employees investors startup' Now you know.

Due Diligence 174

Due Diligence Sweat Equity Intellectual Property Burn Rate 174

Agile VC

DECEMBER 4, 2014

You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division. Both of these are typically reflected in the founder equity split.

Cofounder 173

Cofounder Equity Founder Sweat Equity 173

Startup Professionals Musings

FEBRUARY 28, 2010

I would like my sweat equity and existing IP to be the risk that I incur without also risking an asset that could easily represent the majority of my total assets. By separating the name in a lease arrangement, I was also hoping to be able to offer greater equity to a potential co-founder and early employees.

Sweat Equity 188

Sweat Equity Entrepreneur Equity CPA 188

philipsmith.typepad.com

SEPTEMBER 24, 2011

While there have been times in the last dozen or so years, usually during times of venture capital excess, that cash to founders, early-stage executives and other key employees has matched regular market compensation (still with the upside of the equity), this is not true in the vast majority in the start-up game.

Silicon Valley 40

Silicon Valley Equity Technical Review Recapitalization 40

The Startup Magazine

JANUARY 10, 2023

Hufnagel, who possesses an intrinsically driven personality, leads with passionate optimism that pushes him beyond obstacles—and he looks for employees who share his unbridled enthusiasm. At The Lemon Perfect Company’s headquarters in Atlanta, Hufnagel says employees are as passionate as he is. Photo by nappy: [link]. “I

Hiring 158

Hiring Founder Sweat Equity Cofounder 158

grasshopperherder.com

SEPTEMBER 24, 2011

Piercing the Corporate Veil – Sweat Equity Consulting. Some have been as co-founder, most have been as a consultant with the possibility of becoming an paid employee, “as soon as we close our funding round.” If you did, why would you be consulting for sweat equity instead of investing as a VC or for yourself?

Sweat Equity 41

Sweat Equity Equity Cofounder Non-Compete 41

Gust

APRIL 11, 2014

” That’s because whatever price the public investors are paying for their shares, the founders, employees and earlier investors invariably paid less (in cash; sweat equity is another story). The required “ dilution table ” quantifies this effect in a way that is supposed to be helpful to investors.

Dilution 162

Dilution Equity Pre-Money Valuation Prospectus 162

ReadWriteStart

SEPTEMBER 18, 2012

EDGE : First, you need to make sure you need a co-founder, and not an employee. Don’t worry about defining equity until you understand what each co-founder does. It could be money, sweat equity, connections or industry experience. But there needs to be mutual appreciation. LESONSKY : How does CoFoundersLab help?

Cofounder 150

Cofounder Founder St. Louis Sweat Equity 150

chrischandler.name

NOVEMBER 1, 2010

If you’ve considered finding and asking a developer for his or her time in exchange for sweat equity, I’m going to strongly advise you against it. Equity to a developer works the same way, except it’s often approached as hiring an employee instead of bringing on an investor.

Equity 40

Equity Developer Entrepreneur Syndicate 40

Up and Running

AUGUST 19, 2014

If you don’t have the money to pay your employees and vendors who make running your business possible, it’s not the right time to pay yourself. Owning a business requires plenty of “sweat equity,” and initially often results in working far harder than you’re being compensated for—and earning less than if you worked for someone else!

Salary 119

Salary Sweat Equity Silicon Valley Sales Cycle 119

Scott Edward Walker

JUNE 23, 2011

The most common employment violations are (i) misclassifying an employee as an independent contractor and/or (ii) failing to pay an employee the minimum wage. In short, employees must be paid at least the applicable minimum wage (and typically, at least semi-monthly). Potential Criminal Violations Employment Laws.

Accredited Investor 82

Accredited Investor Sweat Equity Los Angeles Finder 82

ReadWriteStart

SEPTEMBER 18, 2012

EDGE : First, you need to make sure you need a co-founder, and not an employee. Don’t worry about defining equity until you understand what each co-founder does. It could be money, sweat equity, connections or industry experience. But there needs to be mutual appreciation. LESONSKY : How does CoFoundersLab help?

Cofounder 110

Cofounder Founder St. Louis Sweat Equity 110

BeyondVC

OCTOBER 8, 2003

Other investors may not want to fund the company, and you may set unrealistic expectations for you, your employees, and your investors. VCs like sweat equity. Isn’t the whole point of working at a startup to build real value through equity? Don’t hire people that expect to get paid back salary.

Sweat Equity 60

Sweat Equity Term Sheet Bankruptcy Salary 60

BeyondVC

OCTOBER 8, 2003

Other investors may not want to fund the company, and you may set unrealistic expectations for you, your employees, and your investors. VCs like sweat equity. Isn’t the whole point of working at a startup to build real value through equity? Don’t hire people that expect to get paid back salary.

Sweat Equity 60

Sweat Equity Term Sheet Bankruptcy Salary 60

Up and Running

FEBRUARY 5, 2010

It’s for founders who are totally committed to it, for investors who spend money and, later, for the most important trusted key employees. There is only 100 percent ownership in a company. It’s not for your cousins, your in-laws, the lawyer who did the initial paperwork or the vendor who did the website. It lasts forever.

Equity 60

Equity Sweat Equity Cofounder Startup 60

Up and Running

APRIL 10, 2019

Taking on your first employees. Many businesses will hire recruiting and onboarding agencies to find employees for their burgeoning digital marketing agency, but if you’re going to build an agency without funding then you need to be doing this yourself. Training your employees can be a costly business if you are not wise.

Marketing 79

Marketing Bootstrapping Sweat Equity Harvest 79

The Equity Kicker

SEPTEMBER 2, 2015

The founding team sets the mould for future employees of a company and the oft repeated cliche that A players hire A players while B players hire C players is very true. Most commonly that’s done through freelance arrangements and sweat equity deals. Building the right founding team. And that includes the choice of co-founder.

Sweat Equity 60

Sweat Equity Cofounder Angel Investor eCommerce 60

discuss.joelonsoftware.com

NOVEMBER 1, 2010

where I can learn about how to build a sweat equity team? Right now, my business is just myself and a part-time employee who does support, testing, and product usability design. Rather, it is a proposal for sweat-equity investors. The challenge here is to find candidate sweat equity partners who: 1.

Sweat Equity 40

Sweat Equity Equity Angel Investor Affiliate 40

Austin Startup

SEPTEMBER 19, 2017

As founders, your job includes selling product to customers, stock to investors, and opportunity to employees. You might consider starting with an offer to invest at a low valuation before discussing sweat equity. I think of this as an early test of the founding team’s sales ability.

Advisory Board 48

Advisory Board Sweat Equity Marketing Vertical 48

Small Business Force

JANUARY 25, 2013

Too many entrepreneurs end up not only investing their life savings but continuing to also invest "sweat equity" while paying employees, suppliers and landlords. In the early going, things are less formal, and if you're an S corporation with no employees, you're probably not doing the formal payroll thing."Sam"

Sweat Equity 37

Sweat Equity Salary Early Stage America 37

grasshopper.com

SEPTEMBER 24, 2011

Sweat Equity Or Equity With Compensation? The arrangement of pure equity without additional compensation is considered a fairly risky agreement. The potential pay-out could be quite large since you will likely be offered significant equity if no money is involved. per year along with your regular pay.

Equity 41

Equity Vesting Sweat Equity Salary 41

Women Entrepreneurs Can

MAY 9, 2019

During the early days, these are your key contributors and they must be willing to put as much sweat equity into the organization as you are. This can be problematic if employees are stretched too thin; it doesn’t matter how much talent they have or how invested they are into your concept.

Programming 40

Programming Sweat Equity Startup Private Equity 40

Gust

MAY 24, 2012

As a quick review, most startups begin life as corporations with a single class of equity securities, referred to as Common Stock , issued to founders, employees, and outside service providers. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159

IPO Equity Common Stock Stock 159