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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. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. as his "retail" price. So subtract a third from 16.7%

Equity 391
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What if you and your investors don’t agree on an exit?

Berkonomics

Of course, even though that is your contract with the investors, way over half of those implied contracts never work out that way. Of course, you will find yourself in opposition to your investors and some of most of your board members if you do this after taking outside investment. What if you later decide to just keep control?

Equity 156
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The Changing Venture Landscape

Both Sides of the Table

We have global opportunities from these trends but of course also big challenges. Of course we can’t. On the other hand, the biggest winners will turn out to be much larger than the prices people paid for them and this will happen faster than at any time in human history. Hot, Flat & Crowded.” What Has Changed in Financing?

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An economics lesson for growing companies

Berkonomics

It may not be equity. Venture or angel-financed companies with plenty of working capital sometimes are immune to this working capital need for some time into their growth, but at some point, it will become clear that the cheapest form of finance is not equity in a growing enterprise. Back to loans costing less than dilution of equity.

Company 156
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5 Startup Funding Models That Depend On The Consumer

Startup Professionals Musings

In fact, perhaps the most important model, equity crowdfunding for non-accredited investors was legalized via the SEC way back in 2016, and its impact is still not fully understood. With this model, a startup pre-sells their product early, at a cheaper price, in exchange for a pledge. Startup equity model. In the U.S.,

Funding 141
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Bad Notes on Venture Capital

Both Sides of the Table

Me: At what price? Him: It wasn’t priced. So you did raise with a price. It’s just a maximum price. It’s like we need a finance 101 course for entrepreneurs. Him: But when I raised my first round we didn’t know how to price the company. How will you price the next round?

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With Bambee, Allan Jones wants to give small businesses HR services their employees can trust

TechCrunch LA

” Over the course of working with LA startups including Docstoc and ZipRecruiter, Jones realized that the precarity he had witnessed in his father’s situation as an employer carried over to employees as well. The HR service component where the trust equity is built … how much can you expand what you can get these companies to do?”

Services 281