Both Sides of the Table

AUGUST 28, 2009

I know that we haven’t brought in revenue as quickly as we had hoped. They haven’t hit their revenue targets. We do hand out stock options. I know that you keep reading about how our competitors seem to been going from strength-to-strength in the press. I know that we’ve made some mistakes.

PR 331

PR Software Review Ireland Germany 331

Both Sides of the Table

APRIL 27, 2010

I learned how to retain employees when stock options were no longer a real currency. and we ultimately sold when we hit $14 million and had more than $30 million in backlog revenue. I learned about revenue recognition. I learned how to integrate customers into our product development process.

Venture Capital 285

Venture Capital Hiring Software Review Stock Options 285

Startup Professionals Musings

AUGUST 8, 2022

Typical incentives give percentages of quarterly revenues and contribution as rewards for success. An even better alternative could be stock options, linked to the long-term success of the company. Provide bonuses for volumes, not milestones. Always promote from within rather than seek fresh blood.

Stock Options 277

Stock Options Incubator Framework Stock 277

Startup Professionals Musings

FEBRUARY 18, 2023

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. Look for examples of similar companies and revenue multiples achieved from acquirers. Calculate employee stock option values and vesting times, as well as salary.

Sweat Equity 207

Sweat Equity Burn Rate Technical Review Intellectual Property 207

Startup Professionals Musings

NOVEMBER 6, 2019

Typical incentives give percentages of quarterly revenues and contribution as rewards for success. An even better alternative could be stock options, linked to the long-term success of the company. Provide bonuses for volumes, not milestones. Always promote from within rather than seek fresh blood.

Stock Options 236

Stock Options Incubator Framework Stock 236

Startup Professionals Musings

FEBRUARY 17, 2018

Even non-profits need revenue to cover their costs, and continue to provide services. Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk. Risk is more manageable with subscriptions and even freemium pricing.

Forecast 161

Forecast Stock Options Technical Review Metrics 161

Startup Professionals Musings

APRIL 10, 2016

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. Look for examples of similar companies and revenue multiples achieved from acquirers. Calculate employee stock option values and vesting times, as well as salary.

Sweat Equity 120

Sweat Equity Burn Rate Technical Review Intellectual Property 120

Startup Professionals Musings

APRIL 8, 2015

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. Look for examples of similar companies and revenue multiples achieved from acquirers. Calculate employee stock option values and vesting times, as well as salary.

Technical Review 120

Technical Review Due Diligence Sweat Equity Burn Rate 120

Startup Professionals Musings

NOVEMBER 19, 2017

Typical incentives give percentages of quarterly revenues and contribution as rewards for success. An even better alternative could be stock options, linked to the long-term success of the company. Provide bonuses for volumes, not milestones. Always promote from within rather than seek fresh blood.

Stock Options 141

Stock Options Incubator Framework Stock 141

Startup Professionals Musings

SEPTEMBER 9, 2015

Even non-profits need revenue to cover their costs, and continue to provide services. Great team members may take more time to find, and cost you stock options, but a qualified and highly motivated team that stretches your budget is a good calculated risk. Risk is more manageable with subscriptions and even freemium pricing.

Startup 120

Startup Forecast Stock Options Technical Review 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

crowdSPRING Blog

OCTOBER 10, 2014

Stock option questions startup employees should ask | Business Insider – crowdspring.co/1n8lUje. 5 Things I Learned Analyzing Buffer’s Revenue Dashboard | Ivan Kreimer – crowdspring.co/1xfTwMG. Why entrepreneurs should learn to say “I don’t know” more often – crowdspring.co/1pGXXeF.

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. We were bought for a more reasonable 1x revenue (and about 4x pre-tax income) when the value of the AmeriData stock, options, and cash we took out were factored in. Or the ASP rollup?

Stock Options 70

Stock Options Cofounder Revenue Hosting 70

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

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

Both Sides of the Table

NOVEMBER 4, 2009

Now … these are stock options and not restricted stock so you’ll likely be taxed at a long-term capital gains rate. When I was CEO of my first company (where I admittedly F’d up everything before I figured it all out) we initially calculated for people how much there options were going to be worth some day.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Berkonomics

NOVEMBER 14, 2024

5 to 4 times gross revenues for similar businesses. Free cash flow is important when the buyer intends to finance the purchase using the revenue from the purchased company itself. 4. Here they are, with short explanations of each: 1. Sales Multiple: The usual limits for use of a sales multiple for valuation are from.5

Valuation 62

Valuation Early Stage Stock Options .Net 62

crowdSPRING Blog

NOVEMBER 7, 2014

10 Psychological Triggers To Boost Revenues – crowdspring.co/1rXsiql. Startup Equity and Stock Options: What’s It Worth to You? Here’s a fantastic video that showcases one of the most beautiful cities in the world. Freelancing 101: When to Say ‘No’ | Design Shack – crowdspring.co/1zbCFi3. – crowdspring.co/1sSpg62.

Social Media 99

Social Media Small Business Design Media 99

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. Prepare to fail, 95% do. That’s a tough one, but it’s so important. Everyone should invest the same energy and the same amount of time.

Cofounder 119

Cofounder CTO Hire Startup Europe 119

Both Sides of the Table

MARCH 21, 2010

Plus, we’re all allured by the false sense that our contract with BigCo is going to “make us&# because once they start using us it will spread like wildfire and the revenue will flow in. They negotiate a “master agreement&# to work with your company with some maybe minimum guarantees in terms of revenue.

Warrant 298

Warrant Dilution Startup Stock Options 298

Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? Stock Option plans. How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points? How will the lead determine a value? EBITDA multiple? Me: I know.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Both Sides of the Table

DECEMBER 9, 2013

Deal with company admin: 409a valuations, approve stock options, vote on key measures (15%). should we charge SaaS revenue, ad revenue or volumetric billing revenue? should we cut staff early since our revenue isn’t growing? Provide information / context (15%). Ineffecient Board Meeting.

Advisory Board 337

Advisory Board Valuation Stock Options Seed Money 337

Both Sides of the Table

SEPTEMBER 28, 2013

So the tech team departed en masse to find the next great stock option scheme to make their big bucks. Sure, our revenue is growing, but is that enough to raise an internal round? It is because when you share too much of this information with staff you develop an “options culture” the I find unhealthy.

Startup 417

Startup Dilution San Diego Stock Options 417

YoungUpstarts

FEBRUARY 1, 2020

These are: Revenue Recognition issues. Share-based Compensation. Accounting for Income Taxes. Revenue Recognition. This accounting principle determines the exact conditions in which revenue is recognised and accounted. Stock Option Expensing. . Accounting for Income Tax. Share-Based Compensation.

CPA 165

CPA Stock Options Valuation Stock 165

Startup Professionals Musings

DECEMBER 8, 2019

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? A survey from a while back sets the burden at up to $2.5M

Merger 303

Merger OTC IPO Due Diligence 303

Berkonomics

SEPTEMBER 13, 2010

Compensation’s charter is to approve stock option grants for any employee, no matter how small the grant, and all salary and benefits for at least the CEO if not the next level down, to avoid conflict of interest with the CEO.

Covenant 59

Covenant Software Review Stock Options Vesting 59

Berkonomics

DECEMBER 7, 2023

They include an expense account, company car, profit sharing, 401k contributions, medical coverage for dependents, free life insurance, educational payments, extra vacation, relocation expenses, paid trips to industry association meetings, or a small override on revenue from new products developed under the candidate’s watch.

Stock Options 62

Stock Options Stock Salary Dilution 62

Berkonomics

DECEMBER 6, 2010

Use stock options and warrants to pay for service only rarely. Earlier, I stated that stock options are the currency of early stage business. When assessing the relative merit of using attractive non-cash forms of compensation for outside services, first be aware of the true value of your stock.

Stock Options 61

Stock Options Stock Warrant Common Stock 61

Ben's Blog

APRIL 28, 2010

They are paid in terms of stock options that vest over 4 years and cash bonuses for quarterly and yearly performance. For years, he’s avoided taking any revenue inconsistent with optimizing the user experience. The press broadly questioned his business acumen and Facebook’s ability to generate any meaningful revenue.

Technical Review 78

Technical Review Cofounder Technical Cofounder Software Review 78

Berkonomics

APRIL 4, 2024

And then company grows… Once the company hits high growth or larger size, it is logical to follow the standard practice in the creation of two standing committees composed of outside board members (not employees or executives) – the compensation committee and the audit committee.

Covenant 48

Covenant Software Review Stock Options Vesting 48

Startup Professionals Musings

SEPTEMBER 14, 2022

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? A classic survey from a while back sets the burden at up to $2.5M

Merger 261

Merger OTC IPO Due Diligence 261

Startup Professionals Musings

MAY 3, 2014

It better be an established company, with millions of dollars in annual revenue and profits, following generally accepted accounting, reporting, and audit procedures. Being a public company isn’t cheap or easy. Is your startup really ready to play in the corporate world? Experts estimate the burden of public companies at up to $1M a year.

Merger 246

Merger OTC IPO Stock 246

Startup Company Lawyer

MAY 1, 2009

Data is analyzed by: founder/non-founder status, company revenue and headcount, geography, business segment, and number of financing rounds raised. Tags: Stock options. CompStudy covers more than 25,000 executives at 5,000 companies and is the largest study of its kind. 2008 CompStudy Report in Life Sciences.

Stock Options 31

Stock Options CTO Hire Israel Equity 31

Startup Professionals Musings

JANUARY 16, 2011

He says that you should never consider a public offering unless you are confident that the company will deliver increasing profits and revenue after the offering, so that the public buyer can anticipate a gain. Of course, you’re going to have to perform well to make that stock useful in the acquisitions process.

IPO 223

IPO Social Media Media Exit Strategy 223

Women Entrepreneurs Can

FEBRUARY 8, 2023

Depending on the type of property you purchase, you may also benefit from tax deductions or additional revenue streams through tenant renting fees. Additionally, consider offering incentives such as bonuses or stock options to reward employee performance. Be sure to read these investment property tips before taking the leap.

Artificial Inteligence 52

Artificial Inteligence Guerilla Technical Review Stock Options 52

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

A Smart Bear: Startups and Marketing for Geeks

MARCH 11, 2014

How do you split revenue? You may call it employee number one with a really low salary and really generous stock options and as the company grows, you’ll fix their salary. And then the final thing is just getting the revenue up. Jason: A lot of things are solved with revenue. ” Jason: So? Jason: Nice.

Technical Cofounder 220

Technical Cofounder Cofounder Software Review Management 220