Steve Blank
OCTOBER 24, 2017
Hire a CEO to Go Public. The VCs would hire a CEO with a track record who looked and acted like the type of CEO Wall Street bankers expected to see in large companies. The role of the independent member was typically to tell the founding CEO that the VCs were hiring a new CEO.). People had to actually pay you for your product.
Both Sides of the Table
JULY 22, 2010
Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating. That’s normal.
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Steve Blank
APRIL 10, 2019
Startup employees calculated that a) their hard work could change the odds and b) someday the stock options they were vesting might make them into millionaires. For three decades, from the mid-1970s to the early 2000s, the rules of the game were that a company must become profitable and hire a professional CEO before an IPO.
Both Sides of the Table
SEPTEMBER 5, 2012
The alternative is to give investors 1,2 & 3 the exact same amount of preferred Series A stock and give investors 1 & 2 more common stock (which doesn't have liquidation preferences) to adjust for the discount. What happens in a sale or acqui-hire? So they'll feel cheated. Is there way around this?
View from Seed
OCTOBER 15, 2014
Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, cap table, common/preferred stock dashboard. Team: Hires, fires, departures, responsibility changes, major promotions, and your org chart.
Up and Running
AUGUST 28, 2019
In addition to those two types of hired help, you can get free guidance and support from a local SBDC consultant. Your choice here is to either hire an agent or be your own. If that seems appealing, the good news is that a registered agent can be hired inexpensively ($300 or less) and cover all your needs.
Up and Running
DECEMBER 1, 2015
Typically, employers that offer employees equity compensation will do so in the form of common stock, preferred stock, or stock options. This type of stock is typically given to founders and early employees with the stock value is near zero. See Also: 10 Tips for Dealing With Startup Stock Options.
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