Both Sides of the Table

JULY 27, 2013

Last year I wrote a blog post on entrepreneurs with a chip on their shoulders. A chip on one’s shoulder as in, “F**k the system, it’s broken and I want to fix it” is exactly the energy I look for in entrepreneurs. My point … We’ve all been there – every entrepreneur. Take Maker Studios.

Churn Rate 371

Churn Rate Vesting Viral eCommerce 371

Startup Professionals Musings

SEPTEMBER 10, 2018

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.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Both Sides of the Table

MAY 5, 2011

I’m an entrepreneur at heart so I’m always inspired when I hear stories about innovation. It’s why my investment philosophy is called, “ the entrepreneur thesis.&#. Passionate Entrepreneurs & Ambassadors. You need to have passionate tech entrepreneurs who want to build businesses locally.

Seattle 317

Seattle Silicon Valley Technical Review Los Angeles 317

Both Sides of the Table

SEPTEMBER 29, 2013

It should help some entrepreneurs to better access early-stage capital and should allow some angel investors better access to deal flow. In Jason’s mind half of the VC industry will now disappear as entrepreneurs flock to him and to Dave Morin for their money. Helpful to Entrepreneurs – The most obvious.

Syndicate 356

Syndicate Syndication Cofounder Early Stage 356

Feld Thoughts

SEPTEMBER 2, 2011

The founders each have common shares that will vest over four years. The vesting schedule protects each of the co-founders in case one gets hit by a bus or decides to drop the project after a short period of time. As first time entrepreneurs they did not create an employee options pool; we’ll fix that in a little while.

Cap Table 133

Cap Table CTO Hire Technical Cofounder Cofounder 133

Both Sides of the Table

SEPTEMBER 27, 2012

From the local wins you get pools of money from tech entrepreneurs and investors eager to reinvest it back into the community – the most likely source of a return on their capital. And they have a vested interest in this success. It creates recycled capital + 2nd-time entrepreneurs … on steroids. Maker Studios.

Community 378

Community San Diego Silicon Valley Los Angeles 378

The Next Web

OCTOBER 7, 2013

It is typical for employees to vest their options over four years with a one year cliff, which means a new hire must stay on the company for at least one year to see any shares. After a year, shares will vest in monthly or quarterly splits until the full grant is vested. Entrepreneur Insider Analysis and Opinion How-To''s'

Engineer 129

Engineer Dilution Option Pool Vesting 129

Both Sides of the Table

AUGUST 17, 2009

Many had the typical investor-friendly terms where entrepreneurs would get screwed and not even understand how they got screwed until many years later. There was one firm that offered me an entrepreneur friendly “vanilla&# term sheet and that was True Ventures , which is why I believe they are attracting great early-stage entrepreneurs.

Founder Vesting 252

Founder Vesting Vesting Founder Term Sheet 252

The Next Web

JUNE 15, 2012

And giving equity as compensation can help build loyalty among contractors and consultants, as they now have a truly vested interest in your company’s success. When it comes time to sell the company or go public, you’ll need to know exactly how many shares are vested as that will impact the price per share. Pitfalls in sharing equity.

Equity 116

Equity Stock Options Vesting Stock 116

Scott Edward Walker

SEPTEMBER 28, 2011

Introduction This post was originally part of the “ Ask the Attorney ” series I am writing for VentureBeat (one of my favorite websites for entrepreneurs). Vesting Restrictions. The first deadly mistake relates to vesting restrictions. Below is a longer, more comprehensive version. IP Ownership.

Vesting 89

Vesting Software Review IP Intellectual Property 89

Up and Running

MAY 3, 2012

After all, entrepreneurs can do many good things, not least to create wealth and employment, pay taxes and help the balance of trade through exports. We’re all failing this generation of entrepreneurs by not being tough on them. I work with entrepreneurs and have a pretty good window into their world. Surely we can do better?

Entrepreneur 82

Entrepreneur Technical Review Silicon Valley Lean 82

Scott Edward Walker

FEBRUARY 1, 2014

Mistake #3 : not setting-up vesting schedules (at 17:19). By the way, my favorite part of the video is when an entrepreneur (and former lawyer) walks in late to the workshop and acknowledges that she made the first three mistakes (at 33:14). Mistake #3: Not Setting-Up Vesting Schedules. Up-front vesting possible.

Software Review 111

Software Review Delaware Accredited Investor Due Diligence 111

Scott Edward Walker

FEBRUARY 1, 2014

i) Rule 506 preempts State law, which means all you have to do is file a Form D and pay a filing fee; and (ii) no disclosure requirement/PPM Possible to sell to “friends and family” (e.g., issues to address include: How have they treated their other portfolio companies?

Software Review 111

Software Review Delaware Accredited Investor Due Diligence 111

The Next Web

AUGUST 14, 2013

Always have a vesting schedule. Entrepreneur Lists' (You can choose not to be profitable, but it must be your choice, not something forced on you by the market). Split the stock between the founding team evenly. Make most decisions by consensus, but have a single CEO whose decisions are final. Make it clear from day one.

Startup 161

Startup Ruby Vesting Technical Review 161

Startup Professionals Musings

AUGUST 24, 2016

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.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

ReadWriteStart

MAY 3, 2012

The conflicting (frequently unsolicited) advice startup entrepreneurs too often hear is enough to make you tune it all out. But entrepreneurs who have done it have discovered some best practices to increase the odds of success. But bootstrapping a startup is not easy, requiring discipline and fortitude, as well as ingenuity.

Bootstrapping 137

Bootstrapping Software Review Startup Equity 137

Feld Thoughts

OCTOBER 4, 2013

NEXT by Startup Weekend is a wonderful next step for entrepreneurs looking for feedback on their idea or early business, while heavily leveraging the Lean methodology. Entrepreneurs will be immersed in the skills and tactics their startup needs and will get consistent advice and feedback from the best mentors in Boulder. Sign up here!

Startup 131

Startup Vesting Cofounder Lean 131

Both Sides of the Table

JUNE 18, 2015

I rarely talk to any startup entrepreneur or VC who doesn’t feel it and somehow long for simpler times despite the benefits we all enjoy from increased enthusiasm for our sector. For entrepreneurs there’s too much money sloshing around. And it’s true that I still take a whole lot of first meetings with entrepreneurs.

Software Review 150

Software Review Turkey Portfolio Syndicate 150

Startup Professionals Musings

FEBRUARY 27, 2016

In addition to funding, the good news is that all of these provide aspiring entrepreneurs with an opportunity to perfect their marketing pitch, get some valuable target customer feedback and improve visibility to other funding sources. While all this is definitely a boon to entrepreneurs, it does come with its own set of challenges.

Non-disclosure Agreement 120

Non-disclosure Agreement Intellectual Property Technical Review Vesting 120

The Next Web

NOVEMBER 20, 2013

You should also make sure you have a vesting schedule in place on any equity granted, typically earned 25 percent per year over a four year period of time, starting at the end of the first year of the grant. Entrepreneur Analysis and Opinion' It’s also worth mentioning that splitting up the pie is only half of the exercise.

Cofounder 136

Cofounder Equity Founder Seed Stage 136

crowdSPRING Blog

APRIL 13, 2012

10 Things Entrepreneurs Can Learn From Academics – [link]. 10 Things Entrepreneurs Can Learn From Academics – [link]. Good & useful post for entrepreneurs about founder stock vesting & things to consider – [link]. Compete on Know-Why, Not Know-How – [link].

Social Media 95

Social Media Small Business Design Media 95

Both Sides of the Table

MAY 7, 2016

You Need to Find Your Mojo A Chip On Your Shoulder A few years ago I wrote a blog post on entrepreneurs with a chip on their shoulders. A chip on one’s shoulder as in, “F**k the system, it’s broken and I want to fix it” is exactly the energy I look for in entrepreneurs. We’ve all been there — every entrepreneur. But that’s hard.

Churn Rate 150

Churn Rate Vesting Dilution Europe 150

Gust

DECEMBER 1, 2011

When meeting with early stage entrepreneurs for the first time, after reviewing a demo or hearing their pitch, I often ask them to articulate what they’re most focused on building. I don’t fault entrepreneurs for relegating startup legal work to the bottom of their daily triage list; founders are spread incredibly thin.

IP 114

IP Intellectual Property Equity Liquidity Event 114

Startup Professionals Musings

JANUARY 15, 2021

When an entrepreneur first incorporates a business, they may find themselves the proud owner of 10 million shares of common stock, commonly called founder’s shares. every entrepreneur should incorporate early and file an 83(b) election with the IRS within 30 days of founding the company. Key founder vesting should have no cliff.

Vesting 298

Vesting Dilution Stock Founder Vesting 298

techcrunch.com

JUNE 22, 2012

So, you go out to find a veteran entrepreneur, ask her to be an advisor in your fledgling company … and then what? Entrepreneurs want to compensate their mentors and advisors for the time they dedicate to helping their businesses grow, but they have no idea how much equity to offer. This is where a lot of founders get stuck.

Equity 94

Equity San Francisco Startup Silicon Valley 94

NZ Entrepreneur

JUNE 9, 2022

This does need to be balanced with the fact that video calls have made it easier to include everyone in every meeting where they may only have a slightly vested interest so there maybe a need for multi-tasking sometimes! 5: Team building. INSIGHTS FROM THE TEAM AT CHORUS BUSINESS.

Vesting 114

Vesting Bandwidth Technical Review Video 114

The Next Web

JULY 21, 2013

Editor’s note: This is a guest post by Güimar Vaca Sittic , a two time Internet entrepreneur currently working at Quasar Ventures based in Buenos Aires, and a Startup Chile Judge. Being an entrepreneur is all about enthusiasm and energy. This is why vesting is so important. Investing in vesting. An example.

Vesting 143

Vesting Founder Chile Equity 143

venturehacks.com

FEBRUARY 24, 2010

Build in founder vesting (a.k.a. Neil Patel, a very smart entrepreneur, also has an excellent recent post that you may want to check out: “Beginner’s Guide to Finding the Right Business Partner” (see [link]. I know a lot of people who want to be an entrepreneur but many do not have what I call the “survival gene&#.

Cofounder 101

Cofounder Founder Technical Cofounder Technical Review 101

Up and Running

OCTOBER 28, 2022

Securing investment dollars is often the number one priority for entrepreneurs when starting a business. You have a vested interest in its success, which can provide you with the drive needed to overcome challenges and establish strong relationships with customers, vendors, suppliers, and so on.

Cost 138

Cost Startup Early Stage Vesting 138

crowdSPRING Blog

JULY 1, 2011

Interesting but punitive provision in Skype’s option plan allowing repurchase of even vested options at grant price – [link]. Tech Start-Ups Struggle With Followup Fund-Raising – [link]. Startups Need to Make Leaps of Faith, But Not Blindly – [link]. 10 Marketing Lessons for Early-Stage Tech Startups - [link].

Social Media 92

Social Media Small Business Design Media 92

Startup Professionals Musings

DECEMBER 14, 2014

Most entrepreneurs struggle with many startup Founders dilemmas in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Giving equity is realistic, but base it on contribution and role, with vesting after time and milestones. Marty Zwilling.

Hockey Stick 268

Hockey Stick Cofounder Entrepreneur Liquidity Event 268

NZ Entrepreneur

MAY 27, 2019

There are plenty of Meetups, groups and events for NZ startups and entrepreneurs but the biggest thing to note here is that they won’t come and find you – you have to get out, get networking and find them! Get entrepreneur articles by email once a month. NZ Entrepreneur. Finding a non-technical cofounder. NZ Sales Manager.

Technical Cofounder 72

Technical Cofounder Cofounder Technical Review Software Review 72

Duct Tape Marketing

MAY 19, 2020

Lots of entrepreneurs have fascinating tales of how they got the idea to start their business and the journey that they went on to get that business off the ground. Of course, you have a vested interest in selling your business as the best business out there in your field. Brand Story. Every brand has a story.

Video 101

Video Marketing Technical Review Software Review 101

Both Sides of the Table

MAY 9, 2011

Vested over 4 years. If you do decide to go down the 50/50 route, please at least consider: Make sure you have founder vesting for both of you. It is not uncommon to see startup founders walk before raising capital and take large pieces of equity with no vesting. Hire your co-founder. Give them a large sum of equity.

Cofounder 393

Cofounder Founder Vesting Founder Vesting 393

Startup Professionals Musings

APRIL 10, 2016

Calculate employee stock option values and vesting times, as well as salary. Since nine out of ten startups fail completely, serious investors look for a 10X return on their investment within five years. Look for examples of similar companies and revenue multiples achieved from acquirers.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

SEPTEMBER 27, 2023

When an entrepreneur first incorporates a business, they may find themselves the proud owner of 10 million shares of common stock, commonly called founder’s shares. every entrepreneur should incorporate early and file an 83(b) election with the IRS within 30 days of founding the company. Key founder vesting should have no cliff.

Stock 240

Stock .Net Vesting Founder Vesting 240

Steve Blank

JULY 19, 2010

As a founder I fought with VC’s over vesting as they brought in a new CEO and walked me out the door. As a board member I negotiated with founding CEO’s over vesting when I thought it was their time to go. I’ll offer that both entrepreneurs and VC’s have the wrong model for founding CEO equity compensation. The New Deal.

Vesting 264

Vesting Liquidity Event Founder Vesting Venture Capital 264