Both Sides of the Table

JULY 29, 2010

People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). Mark Jeffrey - Q: “Is it more traditional to do your ESOP (employee stock option plan) before or after your angel or Series A funding?&#

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Startup Professionals Musings

AUGUST 8, 2022

Escalate all problems upward to senior management. Avoid the macho concept that only top management can solve problems or address strategic challenges. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. Decisions made lower down always get more buy-in.

Stock Options 277

Stock Options Incubator Framework Stock 277

Startup Professionals Musings

NOVEMBER 6, 2019

Escalate all problems upward to senior management. Avoid the macho concept that only top management can solve problems, or address strategic challenges. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. Decisions made lower down always get more buy-in.

Stock Options 236

Stock Options Incubator Framework Stock 236

Startup Professionals Musings

FEBRUARY 18, 2023

The allocation of shares among the founders, and the number and size of outside investments, will tells volumes about the health, stability, and management of the business. If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Startup Professionals Musings

FEBRUARY 17, 2018

Many risks can be managed or calculated to improve growth or provide a competitive edge, while others, like skipping quality checks to save money, are recipes for failure. The challenge is to avoid the bad risks, while actively seeking and managing the smart risks. Risk is more manageable with subscriptions and even freemium pricing.

Forecast 161

Forecast Stock Options Technical Review Metrics 161

Startup Professionals Musings

SEPTEMBER 9, 2015

Many risks can be managed or calculated to improve growth or provide a competitive edge, while others, like skipping quality checks to save money, are recipes for failure. The challenge is to avoid the bad risks, while actively seeking and managing the smart risks. Risk is more manageable with subscriptions and even freemium pricing.

Startup 120

Startup Forecast Stock Options Technical Review 120

Startup Professionals Musings

NOVEMBER 19, 2017

Escalate all problems upward to senior management. Avoid the macho concept that only top management can solve problems, or address strategic challenges. Typical incentives give percentages of quarterly revenues and contribution as rewards for success. Decisions made lower down always get more buy-in.

Stock Options 141

Stock Options Incubator Framework Stock 141

Startup Professionals Musings

APRIL 10, 2016

The allocation of shares among the founders, and the number and size of outside investments, will tells volumes about the health, stability, and management of the business. If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

APRIL 8, 2015

The allocation of shares among the founders, and the number and size of outside investments, will tells volumes about the health, stability, and management of the business. If the company has been around for more than a couple of years, and still has no product or revenue flow, there better be a good explanation.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Steve Blank

MARCH 16, 2016

For the first few years, your VCs want you to keep your head down, build the product, find product/market fit and ship to get to some inflection point (revenue, users, etc.). For example, in your industry do companies build value the old fashion way by generating revenue? If so, how is the revenue measured? FDA approvals?

Liquidity Event 120

Liquidity Event Founder Liquidation Preference Private Equity 120

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

And when you look at the tools that we use, I mean we’ve made so many technological advances, but really to manage a meeting there’s not a practical tool available. We use email; we use Word; we use task manager; we use a file sharing tool. They are so happy that they finally have a tool to manage their business.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220

crowdSPRING Blog

OCTOBER 10, 2014

Stock option questions startup employees should ask | Business Insider – crowdspring.co/1n8lUje. 44 engineering management lessons – crowdspring.co/1x7TVkf. 5 Things I Learned Analyzing Buffer’s Revenue Dashboard | Ivan Kreimer – crowdspring.co/1xfTwMG. ” – crowdspring.co/1slKVZ2.

Social Media 97

Social Media Small Business Design Media 97

Feld Thoughts

JANUARY 7, 2015

Companies were being bought (and valued) at 10x forward revenue only to be valued at between 0.5x revenue several years later. A few companies got bought before the whole Internet-bubble thing fell apart, and we almost managed to get bought (for around $500 million, but that’s another story for another day.).

Stock Options 70

Stock Options Cofounder Revenue Hosting 70

The Next Web

AUGUST 12, 2013

Starting a global tech business with international, well-educated and highly-skilled people, generating millions of revenue per month, is incredibly hard. It’s important you understand the risks, and start managing them. I managed that by simply being completely transparent about our financials (I still am).

Cofounder 119

Cofounder CTO Hire Startup Europe 119

Up and Running

DECEMBER 16, 2021

Metrics such as discretionary cash flow or business revenue are used. A company’s goodwill might be worth 2x more than the discretionary cash flow, or the accounting practice’s value might be worth 1 to 1.35x the annual revenue + work-in-progress (inventory). their net commission revenue. It has $600,000 in EBITDA.

Valuation 86

Valuation .Net Metrics Balance Sheet 86

Both Sides of the Table

NOVEMBER 4, 2009

If you’re thinking about joining as the director of marketing, product management manager, senior architect, international business development lead, etc. Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. Let’s face it.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Both Sides of the Table

JUNE 17, 2017

It was a stock option incentive related “expense” but I bet you didn’t know that because in an era where we only read the headlines — they must be a train wreck losing billions. Revenue When I look at an income statement I start by focusing on the revenue line. You need to understand the “quality” of the revenue.

Stock Options 227

Stock Options Startup Dilution Venture Capital 227

Berkonomics

FEBRUARY 13, 2025

Use stock options and warrants to pay for service only rarely. Earlier, I stated that stock options are the currency of early-stage business. There are times when services of others are available for stock instead of – or in addition to cash. This truth is obvious when a start-up has no cash.

Stock Options 106

Stock Options Warrant Common Stock Dilution 106

Both Sides of the Table

DECEMBER 9, 2013

Most board meetings are “update meetings” where management downloads its status to a group of investors. This is hardly ideal and some simple changes could help management avoid both issues. I’d want to maximize the amount of time these outsiders could spar with management on the key issues in my business.

Advisory Board 337

Advisory Board Valuation Stock Options Seed Money 337

Ben's Blog

APRIL 28, 2010

joined as a General Manager of the Computing Tabulating Recording Company, but renamed the company International Business Machines and turned it into the IBM we recognize today. They are paid in terms of stock options that vest over 4 years and cash bonuses for quarterly and yearly performance. Thomas Watson, Sr.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Startup Company Lawyer

MAY 1, 2009

CompStudy publishes an annual report of equity and cash compensation that provides compensation data on top management positions and Boards of Directors at private companies in technology and life sciences. Tags: Stock options. CompStudy covers more than 25,000 executives at 5,000 companies and is the largest study of its kind.

Stock Options 31

Stock Options CTO Hire Israel Equity 31

Women Entrepreneurs Can

FEBRUARY 8, 2023

This could include tools such as automated customer relationship management systems (CRM), artificial intelligence (AI) for predictive analytics and market insights, or cloud-based solutions for data security and scalability. Additionally, consider offering incentives such as bonuses or stock options to reward employee performance.

Artificial Inteligence 52

Artificial Inteligence Guerilla Technical Review Stock Options 52

YoungUpstarts

FEBRUARY 11, 2020

Whenever I start a new job or join a board, I spend time understanding what is really important to the company, especially around strategy, revenue and capital allocation. When I became a managing partner, aside from directing our strategy on where to invest, I also helped recruit board positions and management teams.

Switzerland 264

Switzerland Private Equity Stock Options Equity 264

Both Sides of the Table

APRIL 22, 2010

Your revenues are “just around the corner.&# Your angel investors are nervous because the VCs aren’t moving that fast to fund your next round. Their not committing quickly to that bridge. .&# That awesome gal you hired in engineering has job options and she knows it. You have Google guys sending you CVs.

Hiring 392

Hiring Employee Vesting Silicon Valley 392

Tim Keane

JANUARY 12, 2010

Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values.   For individual angels and others investing their own money, this may be more fluid than for someone with responsibility for a managed fund.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

The Next Web

SEPTEMBER 16, 2012

Who is your manager? The best general rule of thumb is that if your role is to generate revenue for the company, then you are in Bucket X. If your role is not actively creating revenue, then you are in Bucket Y. What about company stock options? If you get the chance to work with an absolute rockstar (i.e.

Stock Options 141

Stock Options Startup Stock Salary 141

YoungUpstarts

OCTOBER 26, 2018

When a small business startup manages to secure external investment magical things happen. The first is making sure that there is a good understanding of the management structure and hierarchy in place. Secondly, it needs to explain and convince its revenue potential. Recognizing the biggest benefit of external investment.

Stock 166

Stock Stock Options Startup Equity 166

Berkonomics

JULY 5, 2018

Or if you’re an employee with stock options, are you aware of the increases in value you can make with your efforts? Then again, you may be an architect or doctor or other professional managing your. Ever think about growing your business with the plan to sell it someday, cashing in on your hard-earned work over the years?

Intellectual Property 90

Intellectual Property Management Stock Options Stock 90

VC Cafe

SEPTEMBER 16, 2021

She makes money for the platform that hosts her without receiving the legal and financial protections of employee status, or the stock options typically given to the platform’s engineers, designers, and managers. “What the creator economy promises, and what it actually does”, The New Yorker.

Startup 207

Startup Social Media Venture Capital Advertising 207

infochachkie.com

SEPTEMBER 24, 2011

Beware The Consultant John Greathouse – Posted in: Cash Flow Management , Launching Venture , Strategic Planning. For instance, if a consultant proposes to help you with public relations, pay them a commission equivalent to the greater of a flat fee per story placed or a percentage of revenue generated from the PR coverage.

Equity 40

Equity Silicon Valley Cofounder PR 40

Gust

DECEMBER 8, 2011

Take any steps needed to qualify Newco to conduct the business it plans to conduct wherever it’s located (for example, a filing made in California qualifying a Delaware corporation to do business there if the management team is located in San Francisco). Sales contracts accounting for significant revenue. Office and equipment leases.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Up and Running

SEPTEMBER 20, 2021

And as the company grows, it brings on new people and may decide to issue stock options to attract new staff and funding from investors. A cap table will help you in the strategic management of business decisions. Outline your plans for future employee stock option pools. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

The Startup Magazine

JUNE 1, 2023

We’re hitting record revenue months, weeks, and margins. Don’t be afraid to pivot The collapse of SVB spurred us to do a deep evaluation of how we’re generating revenue and value for customers. So instead of throwing dollars and time at a revamp, we’re doubling down on what we already know is the best value and revenue generator.

Early Stage 146

Early Stage Los Angeles Silicon Valley Cofounder 146

www.paulgraham.com

APRIL 28, 2010

And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. There never has to be atime when you have no revenues. At Viaweb we managed to raise $2.5 Apparently our situation was not unusual. VCs are more likely to requirevesting than angels.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Up and Running

JUNE 21, 2011

Key managers who are not the sole shareholders of the business can create a huge conflict of interest during a sale and hold shareholders hostage during sale negotiations. Make sure to put in place incentives (like a sale bonus or stock options program) today to avoid eleventh-hour power plays.

Sales 86

Sales Investment Bankers CPA Stock Options 86

Growthink Blog

JULY 2, 2010

That’s a lot of money, particularly considering that Vringo only generated $20,000 in revenues last year. It helps with recruiting top management talent, particularly since the value of/likelihood of exercising employee stock options appears greater. Last week, Vringo, a video ringtone company raised $9.2

Venture Capital 85

Venture Capital Stock Options New York Angel Investor 85

Up and Running

JUNE 19, 2015

Sabrina: In terms of that, when you think about growing and getting more people on board and all the people management that goes a long with it, how have you dealt with continuing to make sure that the culture is what you want it to be and that you have time to think about it? I also like Trello which is a project management software.

Cloud 60

Cloud Silicon Valley Small Business Media 60