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

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

Both Sides of the Table

MAY 27, 2013

In his tenure as CEO of DataSift we have never missed a monthly revenue figure. He has grown our US operations from 1 employee (him) to a global organization of 75 employees that will finish the year with 8-digit revenues (90+% recurring) and more than 350% year-over-year growth. But by doing quick calls you feel more connected.

Advisory Board 365

Advisory Board CTO Hire Fractional CTO Los Angeles 365

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

Startup Professionals Musings

AUGUST 27, 2014

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 283

Startup Forecast Stock Options Technical Review 283

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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. Total share ownership is the sum of the common stock, stock options, preferred stock, and any other stock category for a single individual. Total share ownership.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

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

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

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

YoungUpstarts

OCTOBER 26, 2018

Secondly, it needs to explain and convince its revenue potential. If an options trader can see the direction the business is taking through external investment and a sound corporate structure, they are likely to buy options on that stock.

Stock 166

Stock Stock Options Startup Security 166

Berkonomics

OCTOBER 21, 2021

Should be overwhelm prospective employees with stock options and perks? And there are some industries where tools such as stock options are considered mandatory for a company to be competitive. Sometimes, a combination of revenue, gross profit and even operating income form the basis for individual and team rewards.

Employee 62

Employee Stock Options Salary Stock 62

Scalable Startup

OCTOBER 26, 2014

The Greenshoe is an over-allotment of stock options, up to 15% of the total offering at time of IPO. You can offer these options to virtually anyone, friends, family, people who helped your company. Since they’re options, acquirers only exercise if the stock goes up, and have no downside risk or capital outlay.

Silicon Valley 25

Silicon Valley Hawaii Angel Investor IPO 25

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 108

Early Stage Los Angeles Silicon Valley Cofounder 108

Austin Startup

NOVEMBER 29, 2017

Namely, windfall revenue from oil means that the Texas taxman does not collect personal or corporate income taxes (on the state level). If you’ve just exited or realised stock options from a Silicon Valley success story, moving out of state is worthwhile. For starters, it’s worth pointing out that Texas is an oil state.

Early Stage 48

Early Stage Austin Silicon Valley Texas 48

Startup Professionals Musings

JANUARY 13, 2018

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 PwC survey averages the burden of public companies at $1.5M

Merger 198

Merger OTC IPO Due Diligence 198

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. Early in my climb I was hyper-focused on title and pay, realizing later that good health was like a stock option that pays off later.

Switzerland 264

Switzerland Private Equity Stock Options Equity 264

Scalable Startup

OCTOBER 26, 2014

The Greenshoe is an over-allotment of stock options, up to 15% of the total offering at time of IPO. You can offer these options to virtually anyone, friends, family, people who helped your company. Since they’re options, acquirers only exercise if the stock goes up, and have no downside risk or capital outlay.

Silicon Valley 20

Silicon Valley Hawaii Angel Investor IPO 20

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

The Startup Magazine

AUGUST 6, 2021

Without them, you cannot earn any revenue. If your vision is powerful enough, you can make up for this by offering recruits stock options. Then, even if their salary is low, your employees would have the option of selling these options at a later date, if the company succeeds.

Limited Liability Company 162

Limited Liability Company Silicon Valley Business Model Stock Options 162

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

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 Audio 207