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I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. Even with an agreed initial equity split, it’s smart to have Founder’s stock actually issue or vest over a period of at least two years, on a month-by-month basis. But don’t get greedy.
I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a cofounder or two. Giving a cofounder a salary won’t get you the “fire in the belly” you want. Each cofounder should get equity for value, based on these key variables: Lived a key role in a previous startup.
Because these considerations can be quite complex, very emotional and have long-term implications, smart entrepreneurs don’t hesitate to get some legal advice at this early stage, in drawing up an agreement document to be signed by each of the co-founders. The CTO of many technical startups was the original founder.
skip to main | skip to sidebar SoCal CTO Thursday, March 1, 2007 Entreprenuer Network Great post by Ben Kuo - The Importance of the “Network&# to Entrepreneurs - the informal connections between people in the technology industry here who have a vested interest in helping entrepreneurs take their companies to the next level.
Jane and Dick, our fearless cofounders of SayAhh, have set up an accounting system and created their first set of financial statements. This week they set out to create their cap table and hire a CTO. The founders each have common shares that will vest over four years. Praveena wants to invest $20,000 and get 20% equity.
I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. Even with an agreed initial equity split, it’s smart to have Founder’s stock actually issue or vest over a period of at least two years, on a month-by-month basis. But don’t get greedy.
Wondering how to find the right cofounder but don’t know where to start? Finding a technicalcofounder. It’s a common issue – you have an idea that will require some technical know-how (eg coding, engineering, science) but don’t have those skills yourself. Finding a non-technicalcofounder.
I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. Even with an agreed initial equity split, it’s smart to have Founder’s stock actually issue or vest over a period of at least two years, on a month-by-month basis. But don’t get greedy.
He can be technical, but he must be able to wield the tools of influence. What you don’t know Business founders who don’t code use bad proxies for picking technical co-founders (&# 10 years with Java!&# ). Technical founders who don’t sell also use bad proxies (&# Harvard MBA!&# ).
I’ve seen a range of options for supporting entrepreneurs, which I can rank from least to most involvement in companies by investors: financier VCs, e.g., Correlation Ventures. The question is: how should they be compensated when cofounding a company? equity that belongs to departed cofounders)? mentor VCs, e.g., most VCs.
We’d previously highlighted the top startup failure post-mortems of all-time here (32 in total) written by a group of startup entrepreneurs gracious enough to share their lessons learned from their startup’s failure. In the post-mortem of Kiko, Mahesh Piddshetti writes : Most entrepreneurs have lots of ideas.
For example, most entrepreneurs know that the most successful entrepreneurs - from Bill Gates to Jeff Bezos - kept tight control over their companies. Having seen these dilemmas derail countless startups, I wish every entrepreneur and prospective founder would read this book." - Eric. But such a best-case approach is hazardous.
Entrepreneur news from reporter Eric Markowitz. Advisor. ); STARTUP. These days, start-up entrepreneurs like Parker do sometimes use equity not only to motivate key employees but also to help pay for consulting and other services. Chip Morse , cofounder and partner with Morse, Barnes-Brown & Pendleton P.C., Newsletters.
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