article thumbnail

Equity-Only CTO and Equity-Only Developers

SoCal CTO

Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). And he was still in the process of raising additional capital, so it was equity only. There are cases where I will do equity-only deals. who start with small equity percentages don’t end up making very much from startups.

CTO Hire 241
article thumbnail

Insights and Opinions: Equity is the currency of early stage businesses

socalTECH

For our Insights and Opinions section this afternoon, we have an article from angel investor Dave Berkus , who is past chairman of the Tech Coast Angels, which talks about the structure of equity in an early stage business. Equity is the currency of early stage businesses. To protect against. READ MORE>>.

Equity 140
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

New Venture Equity As Compensation Is A Long-Term Bet

Startup Professionals Musings

With all that said, here are some “rule of thumb” guidelines on what might be a reasonable offer, as summarized from a classic article by Guy Kawasaki , and based on discussions I hear rattling around the investor community. Advisory Board Member, 1% Senior Engineer,3 -.7% 7% Product Manager,2 -.3% 7% Product Manager,2 -.3%

Equity 94
article thumbnail

5 Startup Funding Models That Depend On The Consumer

Startup Professionals Musings

According to a classic article on Thrinacia , there were over 600 crowdfunding platforms in existence then, estimated to add more than $89 billion to the economy at a compound growth rate of 17% from 2019 to today. Startup equity model. In Europe, other investors can buy equity, with platforms such as Seedrs. In the U.S.,

Funding 141
article thumbnail

Silicon Valley VC's New LPs: Hollywood?

socalTECH

In an article talking about where Hollywood's elite is putting its money, variety said that business managers who handle the financial affairs of Hollywood's stars and execs are eagerly looking to place a "significant portion" of their portfolios in the tech sector, often through buying into venture capital funds on Sand Hill road.

Hollywood 171
article thumbnail

5 Steps To Finding The Best Investor For Your Startup

Startup Professionals Musings

Taking on equity investors to fund your company is much like getting married – it is a long-term relationship that has to work at all levels. Check for positive or negative news articles, press releases, relationships, and support of community organizations. Do research on investor visibility via Google and social media.

article thumbnail

Equity Compensation at a Startup is a Big Gamble

Startup Professionals Musings

With all that said, here are some “rule of thumb” guidelines on what might be a reasonable offer, as extracted from an old article by Guy Kawasaki , and based on discussions I hear rattling around the investor community. Any offers of equity compensation before the first round of institutional capital should be considered purely speculative.

Equity 93