Steve Blank

APRIL 10, 2019

One other thing to note is that all employees – founders, early employees and later ones – all had the same vesting deal – four years – and no one made money on stock options until a “liquidity event ” (a fancy word to mean when the company went public or got sold.) It’s called Growth capital.

Stock Options 335

Stock Options Stock Vesting Common Stock 335

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

Venture Capital 335

Venture Capital IRR Liquidity Event Business Model 335

Steve Blank

JUNE 11, 2013

These are great, but they are not repeatable by a sales organization. The test is: If you add one more sales person or spend more marketing dollars, does your sales revenue go up by more than your expenses? • Business model : A business model answers the basic questions about your entire business: Who are the customers?

Venture Capital 227

Venture Capital IRR Liquidity Event Business Model 227

Gust

SEPTEMBER 5, 2012

Angel investors don’t expect to get repaid, nor do they really want to get repaid; the return on their investment, if the startup proves a success, will come in conversion to equity followed by an eventual liquidity event (sale or IPO of the company), with a return of at least 5x or 10x the initial investment if all goes well.

Finance 134

Finance Convertible Security Equity Seed Stage 134