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Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. The first few people into a startup are on a spectrum of founder vs. early employee. I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups.

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Equity-Only CTO and Equity-Only Developers

SoCal CTO

I had a recent email dialog with the founder of a company looking for a CTO for their startup. Was it a Startup Founder Developer Gap ? Did they really need a Startup CTO or Developer or both? Understand where they were in terms of being able to pay or was this equity-only (sweat equity only).

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8 Questions You Should Ask Before You Join A Startup

Startup Professionals Musings

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.

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Finding a Technical Cofounder for Your Startup

SoCal CTO

I've recently received several emails from people looking for a technical cofounder for their startup. Make sure you go through the 32 Questions Developers May Have Forgot to Ask a Startup Founder. You should definitely hit up the Startup Weekend events as well. And look at StartupDigest.com for lots of startup oriented events.

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10 Keys to Startup Traction That Investors Look For

Startup Professionals Musings

Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level. It doesn’t prove your business model of pricing, distribution, and support.

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These 10 Steps Will Make Your Startup Fundable

Startup Professionals Musings

Funding for pre-revenue startups used to be the domain of angel investors, but they have moved up-stage. Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level. It doesn’t prove your business model of pricing, distribution, and support.

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The Smartest Entrepreneurs Bootstrap Their Startup

Startup Professionals Musings

There is so much written these days about how to attract investors that most entrepreneurs “assume” they need funding, and don’t even consider a plan for “bootstrapping,” or self-financing their startup. General startup expenses are beyond your means. bootstrap business entrepreneur startup' Marty Zwilling.