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Equity for Early Employees in Early Stage Startups

SoCal CTO

I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups. Unlike the founders, the employees have to wait until their grants vest, working at a company no longer of their choosing for two years. Stock vests for 4 years. Same Value for Sweat Equity as Investment Dollars? Wait a second.

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8 Questions You Should Ask Before You Join A Startup

Startup Professionals Musings

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.

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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. Essentially the company sells them the stock at zero cost, and they reverse vest.

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Equity-Only CTO and Equity-Only Developers

SoCal CTO

You should avoid spending your time here and instead focus on finding a way to generate revenue or to attract investors so that you can afford to hire someone. Sweat equity is also applicable for someone who is very interested in the subject that you are working on. What sweat equity is not good for is for people who you don’t know at all.

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Why Uber is The Revenge of the Founders

Steve Blank

— Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm. Typically, this caliber of bankers wouldn’t talk to you unless your company had five profitable quarters of increasing revenue.

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Is it a Good Idea to Have Ads in Tweets?

Both Sides of the Table

Many people have speculated a variety of revenue sources such as charging 3rd parties for their data, charging power users for their accounts, charging “verified users&# for their certified accounts, etc. And it is the most notable media darling not making any money so everyone is asking the question – how will they make money?

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5 UX Hacks That Can Immediately Increase Revenue

ConversionXL

Managing shopper experience for medium-sized eCommerce businesses presents a lot of opportunities for conversion testing, and the ability to see real and immediate revenue results when tests are successful. This one small change led to an additional 110 orders, bringing in an additional $43,230 in revenue in a 2 week period.

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