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Equity for Early Employees in Early Stage Startups

SoCal CTO

In other words, the loss of compensation for the early employee as compared to market rate should be viewed as equivalent to the equity for that same dollar amount from an investor. Unlike the founders, the employees have to wait until their grants vest, working at a company no longer of their choosing for two years. Wait a second.

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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

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. The stock trickled out over four years, as you would “vest” 1/48 th of the option each month. You didn’t get to own your stock options all at once. That made sense.

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Most Common Early Start-up Mistakes

Both Sides of the Table

Research your market. I know it’s obvious but I’m always surprised how many people just start building products without thinking enough about the market. DO NOT start with product, start with the market. Founder vesting. Yesterday I wrote a blog posting on founder vesting (see here ).

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Why Uber is The Revenge of the Founders

Steve Blank

Uber , Zenefits , Tanium , Lending Club CEOs of companies with billion dollar market caps have been in the news – and not in a good way. This era was a “buyer’s market” – there were more good companies looking to get funded than there were VCs. And while new markets were created (i.e. Board Control.

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How to split startup equity between startup founders when starting a new business

The Startup Magazine

nominal versus market price), this is seen as quick revenue. However, the difference between the market and strike prices at the moment of conversion is likely taxable income. For the time being, it is critical to realize that vesting enables you to establish how individuals get their shares over time.

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Entrepreneurs Should be Respected, Not Loved

Both Sides of the Table

Marketing wants the sales teams to use the materials they’ve produced. And in public companies we used to mockingly rename their titles to CVO … Chief Vesting Officer. But if they’re non performing, they’re non performing. There’s no place for that in a startup.

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Is it a Good Idea to Have Ads in Tweets?

Both Sides of the Table

so compelling (other than the fact that the CEO Sean Rad is a great young technology leader and his advisers – Brian Norgard , Dan Gould and Evan Rifkin - are some of the guys I respect most in the LA tech market.). That’s a good thing – it means there’s a market. 30% is the market opportunity.