Remove five
article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. If i is the average outcome for the company with the addition of some new person, then they're worth n such that i = 1/(1 - n). of the company for him. of the company for him. n = (1.2 - 1)/1.2 =.167.

Equity 391
article thumbnail

5 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

So, the first question I usually get is what percent of the company or equity is that person worth? Building a new business is quite different from an executive role in a mature company, so people from these backgrounds are often a liability. Level of responsibility and time allocated.

Equity 99
Insiders

Sign Up for our Newsletter

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

article thumbnail

5 Keys To Negotiating Your Fair Share Of Any Startup

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Building a new business is quite different from an executive role in a mature company, so people from these backgrounds are often a liability. Level of responsibility and time allocated.

Startup 174
article thumbnail

Why The Growth Of The Internet Is Driving EdgeCast's Revenues

socalTECH

The company--which is in the business of operating a content delivery network (CDN) to accelerate the delivery of web graphics, multimedia, applications, and more to end users-- recently disclosed it more than doubled its revenues in 2012, and has grown to over 230 employees--all due to a huge amount of demand for CDN services by its customers.

CTO Hire 248
article thumbnail

LawKick: A Modern Way To Find Legal Help

socalTECH

We spoke with Michael Chasin, the company''s co-founder, about the startup. You fill out the short questionnaire, lawyers submit their price quotes, and they get hired. That happens in just a five minute process. He actually ended up dropping out of law school in his second year to pursue his app company.

Help 240
article thumbnail

How Frost Venture Partners Is Incubating The Big Data Future

socalTECH

DatAllegro was one of the first companies in what is now the "big data" industry, and helped to pioneer the entire segment. Now, Frost has set up shop buildling out a whole series of companies in the industry, and we caught up with him to learn more about the companies (Predixion Software, Cirro, Lineage, Kumo, etc.)

Incubator 208
article thumbnail

How Jukin Media Is Turning Viral Video Into A Real Business

socalTECH

We caught up with Lee Essner , the President of Jukin Media, to learn more about how the company thinks it has figured out how to make a business round viral videos. That''s where the traditional media companies--the morning shows, the news clips shows, the ad agencies--can see what is viral and trending, and can license it directly from us.

Media 235