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. The default answer, to keep peace in the family, is to split everything equally, but that’s a terrible answer, since now no one is in control, and startups need a clear leader. Now comes the reality check.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Startup Professionals Musings

FEBRUARY 18, 2023

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Both Sides of the Table

FEBRUARY 14, 2010

I know that sounds trite but that is exactly how my firm talks about things in partner meetings. It becomes a large part of the conversation in our partners’ meeting afterward. Perhaps VC isn’t the vest route for this individual. Tags: Entrepreneur Advice Start-up Advice Startup Advice.

Technical Review 284

Technical Review Due Diligence Entrepreneur Early Stage 284

Both Sides of the Table

MAY 5, 2011

I’m inspired by the enthusiasm of the young, emerging startup ecosystem that is here. And I think about the “Seattle issue&# as a metaphor for startups and business in general. I was meeting with a first-time CEO of a very promising young startup recently and offering my advice on what his priorities should be.

Seattle 317

Seattle Silicon Valley Technical Review Los Angeles 317

Both Sides of the Table

FEBRUARY 20, 2019

If you haven’t raised any money or if you raised a small round from angels or friends & family I would suggest you avoid setting up a formal board unless the people who would join your board are deeply experienced at sitting on startup boards. just having a sparring partner with a vested interest in your success can be useful.

Venture Capital 236

Venture Capital Startup Angel Investor Silicon Valley 236

The Next Web

OCTOBER 7, 2013

That’s what a couple of my friends – engineers at Google and Bloomberg who have been following the rise of startup culture with intrigue – told me recently. Startup employees are granted common shares out of something called an option pool. Every time a startup raises capital, all common shareholders are diluted.

Engineer 129

Engineer Dilution Option Pool Vesting 129

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. The default answer, to keep peace in the family, is to split everything equally, but that’s a terrible answer, since now no one is in control, and startups need a clear leader. Now comes the reality check.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

The Next Web

NOVEMBER 20, 2013

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. There are a lot of variables to go into calculating a fair equity split a startup team. You can follow George on Twitter at @georgedeeb and @RedRocketVC.

Cofounder 136

Cofounder Equity Founder Seed Stage 136

Startup Professionals Musings

APRIL 10, 2016

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

APRIL 8, 2015

Every startup founder loves to prompt for questions from investors and potential key team members about their vision, and the huge opportunity that can be had with their disruptive technology. Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

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. And even this can’t stop their employees from fleeing after two years of vesting to move on to the next hot startup. Easier said than done.

Software Review 150

Software Review Turkey Portfolio Syndicate 150

The Startup Magazine

OCTOBER 22, 2017

Accountants also have the specialist knowledge to glean insights about the business by interpreting the figures, and can often give specific advice to startups. If you’re not ready to hire a bookkeeper or accountant and you have a business partner, share the job of keeping financial records straight. Share the Load.

Software Review 100

Software Review Startup Vesting Forecast 100

ConversionXL

AUGUST 2, 2017

These are actual results a startup Ringadoc got from their partner program. Chris Samila , Partnerships Manager at Optimizely shares: “We saw building and supporting a partner ecosystem as a massive opportunity. So we started building out the partner program.”. These 3 forces are important for partner strategy.

Channel 84

Channel Partner Programming B2B 84

thinkspace.com

SEPTEMBER 7, 2012

How to Divide Equity to Startup Founders, Advisors, and Employees. Are there principles that you live by that you’ve implemented in your startup that have worked really well? How long should people vest – four years? That’s where a good partner agreement comes into play. Marketing Intern. Office Space.

Equity 62

Equity Employee Founder CTO Hire 62

Tim Keane

DECEMBER 14, 2009

Startups and angels: Along the way to success. Starting Startups.   He is a partner in a pretty much exclusively software seed stage fund, Y Combinator that you can read more about.     Read   Want to Start a Startup ?   A way to fund a startup is to get a job. 

Burn Rate 60

Burn Rate Angel Groups Seed Stage Startup 60

ConversionXL

AUGUST 2, 2017

These are actual results a startup Ringadoc got from their partner program. Chris Samila , Partnerships Manager at Optimizely shares: “We saw building and supporting a partner ecosystem as a massive opportunity. So we started building out the partner program.”. These 3 forces are important for partner strategy.

Channel 77

Channel Partner Programming B2B 77

Startup Professionals Musings

JANUARY 22, 2013

In reality, so-called “founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. These shares are allocated and committed, but not really issued and owned (vested) until later.

Vesting 245

Vesting Common Stock Stock Founder Vesting 245

The Next Web

AUGUST 26, 2013

Today, in steps 10-12 I want to discuss with you raising your first round of money, hiring to develop and maintain your company culture, as well as defining your role in the management of your startup. Both ways are great, I’ve tried both, but personally I wouldn’t try to start something again without partners. 10-20% for employees.

Management 120

Management Cofounder Startup Bootstrapping 120

Both Sides of the Table

MAY 9, 2011

It is increasingly popular to have “founder dating&# or “startup weekend hackathons&# of some variety or the other. You often have very limited perspective on whether this person will continue to be a great partner 2 years down the line, 4 years down the line, 8 years down the line. Vested over 4 years.

Cofounder 393

Cofounder Founder Vesting Founder Vesting 393

Startup Professionals Musings

JANUARY 15, 2021

It’s disconcerting for most to realize that these shares are initially worth nothing, and the challenge is to get that value up as quickly as possible, without losing it just as quickly to investors, lazy partners, and taxation. This is the purpose of a vesting schedule, which issues allocated stock over time.

Vesting 298

Vesting Dilution Stock Founder Vesting 298

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. Both of you work hard for the first couple of months until your partner decides to walk away for any reason. This is why vesting is so important.

Vesting 143

Vesting Founder Chile Equity 143

Both Sides of the Table

MARCH 21, 2010

This is part of my ongoing series on Startup Advice. As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting. Large companies can be strange sometimes. Sometimes it actually does.

Warrant 298

Warrant Dilution Startup Stock Options 298

Startup Professionals Musings

MAY 8, 2022

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Old co-workers or new friends with complementary skills usually make the best partners. Otherwise exit and startup with another idea.

Founder 325

Founder Hockey Stick Cofounder Liquidity Event 325

The Startup Magazine

FEBRUARY 21, 2024

The most poignant of these challenges was the quest for capital partners, which was not just about securing capital but about finding collaborators who were willing to believe in the vision and commit to the long-term journey. These early trials by fire instilled in me a deep empathy for the entrepreneurial struggle.

Technical Review 158

Technical Review Due Diligence Bankruptcy Intellectual Property 158

NZ Entrepreneur

MAY 27, 2019

Some time ago I came across a startup with six founders. Hence you need what they call in startup world a “technical” cofounder. So why should a well paid developer, engineer or maker give it up and come and work on your startup? Go to networking events, startup events and meetups and talk to people.

Technical Cofounder 83

Technical Cofounder Cofounder Technical Review Software Review 83

Startup Professionals Musings

MARCH 23, 2014

In reality, so-called “Founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. These shares are allocated and committed, but not really issued and owned (vested) until later.

Stock 256

Stock Vesting Common Stock Founder Vesting 256

Startup Professionals Musings

APRIL 11, 2021

Although every startup is unique, there are certain common avoidable mistakes that can lead to legal complications which jeopardize the long-term success of the business. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Cost 363

Cost Non-Compete Accredited Investor Cofounder 363

Startup Professionals Musings

SEPTEMBER 27, 2023

It’s disconcerting for most to realize that these shares are initially worth nothing, and the challenge is to get that value up as quickly as possible, without losing it just as quickly to investors, lazy partners, and taxation. This is the purpose of a vesting schedule, which issues allocated stock over time.

Stock 240

Stock .Net Vesting Founder Vesting 240

Startup Professionals Musings

JULY 10, 2012

Although every startup is unique, there are certain common avoidable mistakes that can lead to legal complications which jeopardize the long-term success of the business. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Non-Compete 249

Non-Compete Accredited Investor Cofounder Startup 249

Startup Professionals Musings

AUGUST 7, 2013

Although every startup is unique, there are certain common avoidable mistakes that can lead to legal complications which jeopardize the long-term success of the business. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Marty Zwilling.

Non-Compete 235

Non-Compete Accredited Investor Startup Cofounder 235

Up and Running

DECEMBER 1, 2015

If you’re giving a large percentage of your company to someone (and yes, two percent is large), you’re entering into a contract that’s really a whole lot like marriage in that it creates a long-term relationship between you and the employee or partner. The longer employees stay, the more of their stock options they “vest.”.

Equity 60

Equity Employee Stock Options Vesting 60

Startup Professionals Musings

JULY 19, 2013

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. Old co-workers or new friends with complementary skills usually make the best partners. Otherwise exit and startup with another idea.

Founder 245

Founder Hockey Stick Cofounder Liquidity Event 245

Startup Professionals Musings

OCTOBER 7, 2010

In reality, so-called “founder’s” shares are simply common stock, issued at the time of startup incorporation, for a very low price, and normally allocated to the multiple initial players commensurate with their investment or role. These shares are allocated and committed, but not really issued and owned (vested) until later.

Stock 214

Stock Vesting Common Stock Founder Vesting 214

Startup Professionals Musings

AUGUST 10, 2019

Most entrepreneurs struggle with many startup founders quandaries in building their business, and these key dilemmas are probably the biggest source of pain and failure for the entrepreneur lifestyle. Old co-workers or new friends with complementary skills usually make the best partners. Otherwise exit and startup with another idea.

Hockey Stick 243

Hockey Stick Cofounder Liquidity Event Startup 243

Both Sides of the Table

MARCH 10, 2013

It is my job to be a sparring partner for teams not the decision maker. He had vested 18 months or so. Our company had limited cash and – like most startups – an unsure future. Then on top of that I proposed we offered 2-3 weeks of pay (with a view of settling around 4 weeks) and that we vest an extra 3 months.

Vesting 344

Vesting Cofounder Salary Sales 344

Steve Blank

JUNE 15, 2010

The role of a founding CEO in a startup searching for a business model is radically different than a CEO building and growing a company. So if you’re the founder of a startup, you may want to consider who you take money from. What startup stage do they typically invest in? What Startup Stage Do they Invest In?

Founder 232

Founder Vesting Later Stage Early Stage 232

Both Sides of the Table

NOVEMBER 4, 2009

This is part of my Startup Advice series. at a startup that has already raised $5 million the chances of you making your retirement money on that company is EXTREMELY small. Stock vests for 4 years. So a friend recently called to ask for advice on becoming the CTO of a startup. Let’s face it. That’s Ok.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418