Startup Professionals Musings

SEPTEMBER 25, 2019

For example, 200,000 shares may sound like a lot, but if the startup has issued 20 million (a common starting point), that’s just 1% of the company. 3% If you are not on this list, just worry about getting whatever your peers are getting. So people ask me “How many shares should I ask for or expect when I join a startup today?”

Equity 94

Equity Startup Pricing Marketing 94

Berkonomics

JUNE 10, 2021

How about all those daily decisions? An example to make the point. Take for example, solving key technology problems that prevent a product from shipment, or from scaling to large production. How about early-stage companies with unique problems? It is true in every business, all the time.

Examples 156

Examples Sales Demand Equity 156

Berkonomics

FEBRUARY 9, 2023

Here’s a striking example. The most striking example was the one hundred million–dollar purchase of one of my companies by a New York private equity investor using only five million of its cash. Don’t rule a too–high negotiated price out until you think carefully about the terms of purchase as a tool for leverage.

Pricing 156

Pricing Sales Examples Tool 156

Both Sides of the Table

SEPTEMBER 23, 2010

We all know about AngelGate by now. Here’s what you need to know… As a funny coincidence I happend to have written about the topic of collusion 3 weeks prior to the fateful dinner. They’re not in search of price fixing or collusion, they’re in search of diligence information about the company.

Pricing 292

Pricing Entrepreneur Technical Review Venture Capital 292

Berkonomics

MARCH 21, 2019

Careful about “hockey stick” forecasts. The more you ask for – the more equity you give up. Completing this exercise often leads you to lower your expectations about the amount of money to be raised. Here’s a valuation example for you based on amount to be raised. Try this example: You want to raise $2,000,000 today.

Equity 159

Equity Examples Startup Invest 159

Startup Professionals Musings

AUGUST 29, 2020

If you have the urge to be an entrepreneur, I encourage you to think seriously about each of these, before you zero-in on one or two, and get totally discouraged if those don’t work for you. Trade equity or services for startup help. Another common example is exchanging equity for legal and accounting support.

Funding 174

Funding Startup Equity Examples 174

Both Sides of the Table

FEBRUARY 14, 2016

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. Most venture capitalists who have been in this business for a long time foresaw this correction and have been talking about it privately for the better part of the last year or two.

Startup 150

Startup Company Companies Venture Capital 150

Tech Zulu Event

OCTOBER 30, 2012

Co-founders Myke Armstrong and Jacob Fatoorechi have today launched Tapshare, an app to allow one share their photos instantly and earn equity as well. A group of friends can add Halloween costume pics to a single album, “ Show me your Halloween costume, ” for example. Tapshare is the perfect app to release for Halloween.

Equity 79

Equity Examples Los Angeles Angel 79

socalTECH

MARCH 29, 2016

Around half of employees in all areas were satisfied with what they were being paid--for example, 51% of men and 47 percent of women were happy with their pay in engineering--but only 36 percent of women in operations, versus 53 percent of men, and only 28 percent in sales/business development versus 54 percent of men were happy with their pay.

Satisfaction 100

Satisfaction Santa Monica Equity Examples 100

Berkonomics

JANUARY 6, 2022

Promissory notes come before any equity, and most late equity investments come before early equity investments, even of the same class of security. Here’s an example that will make your heart skip a beat. This makes for some head-rubbing when attempting to calculate the return on investment with a proposed sale.

Venture Capital 156

Venture Capital Sales Pricing Equity 156

Startup Professionals Musings

JULY 1, 2022

For example, 200,000 shares may sound like a lot, but if the startup has issued 20 million (a common starting point), that’s just 1% of the company. 3% If you are not on this list, just worry about getting whatever your peers are getting. So people ask me “How many shares should I ask for or expect when I join a startup today?”

Startup 137

Startup Equity Pricing Marketing 137

TechCrunch LA

MAY 25, 2019

Last week, I wrote about an alternative to venture capital called revenue-based financing and before that, I jotted down some notes on one of VCs’ favorite spaces: cannabis tech. Before I tell you about a few other up-and-coming beverage makers, I must beg the question: Does the beverage industry need disrupting?

Startup 223

Startup Venture Capital Newsletter Tips 223

Startup Professionals Musings

APRIL 23, 2013

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. He published a book with Ron Porter, titled “ Bootstrap Business ”, that provides a wealth of practical examples and advice on this subject. Don’t think about the exit.

Equity 96

Equity Startup Summary Tips 96

Startup Professionals Musings

JULY 31, 2022

In fact, Conscious Capitalism companies, for example, historically have outperformed the S&P 500 index by a factor of ten. Offer equity in future projects to people outside your business. Set an example by being visibly connected to the people and information you need through social media. Adjust accordingly.

Organization 126

Organization Social Media Examples Custom 126

socalTECH

MAY 30, 2012

That's the idea behind a new startup, Fundable , headed by serial entrepreneur Wil Schroter , which allows you to use rewards -- product, company schwag, an even equity -- as a tool to get your startup to the next stage. We allow startups to raise money, both based on equity, as well as rewards. What's Fundable?

Startup 223

Startup Equity Venture Capital Ideas 223

Startup Professionals Musings

NOVEMBER 8, 2010

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity). The same logic applies to splitting equity with co-founders.

Equity 91

Equity Startup CTO Hire CTO Coach 91

Startup Professionals Musings

JULY 24, 2011

For example, 200,000 shares may sound like a lot, but if the startup has issued 20 million (a common starting point), that’s just 1% of the company. 3% If you are not on this list, just worry about getting whatever your peers are getting. So people ask me “How many shares should I ask for when I join a startup today?”

Equity 93

Equity Startup Pricing Marketing 93

Startup Professionals Musings

MARCH 3, 2021

For example, it’s great to pursue a higher purpose, like feeding the hungry, but don’t forget that running any business is a hungry mouth you have to feed. For example, if you have ever watched the Shark Tank show on TV, they always ask about the cost of customer acquisition. Postulate competitive reactions and your responses.

Entrepreneur 162

Entrepreneur Social Media Examples Metrics 162

Startup Professionals Musings

SEPTEMBER 13, 2022

I often get asked about the real alternatives to bridge this valley, and there are some good ones I will outline here. Nevertheless, it’s an option that doesn’t cost you equity. The hottest new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity.

Startup 136

Startup Technical Review Equity Incubator 136

Both Sides of the Table

OCTOBER 14, 2011

The simplest way to think about this is: If you own 20% of a $2 million company your stake is worth $400,000. And figuring out how much your equity may be worth over the course of a 5-year stint at a startup is even more complicated. His personal blog with some great example is here. million at a $7.5 million or a gain of $1.1

Startup 394

Startup Newsletter Course Equity 394

Tech Zulu Event

AUGUST 4, 2015

For example, there are the private company valuation figures that get bandied about: think the numbers people reference for Uber and AirBnB for example. Do you see the overlap with the factors that come into play for equity valuations? Recent equity sales i.e., comparables. The industry’s competitive dynamics.

IP 40

IP Equity Examples Guide 40

Startup Professionals Musings

FEBRUARY 8, 2021

In fact, the cost may be minimal, if you do your networking and build a relationship with an experienced business executive or two in your domain who are willing to share and give back for a nominal retainer, perhaps one percent of your new startup equity. The cost of a co-founder is usually fifty percent of your equity.

Startup 142

Startup Technical Review Equity Entrepreneur 142

socalTECH

SEPTEMBER 23, 2019

Melinda Moore: If you think about it, guys have golf courses, and you have things like the PayPal Mafia, and poker games. Justine Lassoff: One example of these intimate gatherings and events, is we did a luncheon featuring the CFO of Goop. Talk briefly about the conference you're running later this week?

Help 224

Help Entrepreneur Capital Startup 224

Startup Professionals Musings

OCTOBER 30, 2017

One of the most common complaints I hear from new business owners and startups is about the pain and difficulty raising capital. The “venture capital” model is the only option they know, where they feel they get no mercy, giving up equity and control. For example, if you are a doctor, look for funding from the medical world.

Technical Review 88

Technical Review Equity Capital Entrepreneur 88

Startup Professionals Musings

DECEMBER 1, 2021

The sock company Bombas , is well-known world-wide for donating more than forty million pairs of socks to homeless people (one for every pair purchased) because “everyone deserves to put on clean clothes that make them feel good about themselves.” Make sure your hiring practices include diversity, inclusion, and equity.

Examples 128

Examples Social Media Summary Satisfaction 128

socalTECH

JUNE 23, 2021

Alex tells us about how the startup had to reinvent itself during the pandemic, and how it's now taking advantage of the resurgence of the economy to build its business. For example, one lever we have is to send 20 ambassadors to the universities in Los Angeles, and handle out collateral and materials. What is Field Day?

Marketing 113

Marketing Los Angeles Zag Startup 113

Startup Professionals Musings

MAY 22, 2020

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. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Technical Review 174

Technical Review Startup Invest Patents 174

Startup Professionals Musings

OCTOBER 10, 2018

If you have the urge to be an entrepreneur, I encourage you to think seriously about each of these, before you zero-in on one or two, and get totally discouraged if those don’t work for you. Trade equity or services for startup help. Another common example is exchanging equity for legal and accounting support.

Entrepreneur 96

Entrepreneur Startup Equity Funding 96

Startup Professionals Musings

MAY 14, 2023

The best entrepreneurs manage cash flow ruthlessly and never delegate decisions about spending money. Deferred payments start with stretching the payables period but, more importantly, include giving employee equity in lieu of a higher salaries and negotiating vendor deferred payments out of future revenues. You will make mistakes.

Search Engine Optimization 103

Search Engine Optimization Outsource Development Social Media Equity 103

Startup Professionals Musings

FEBRUARY 18, 2023

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. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment.

Startup 83

Startup Technical Review Invest Patents 83

SoCal CTO

MARCH 12, 2012

Here's an example of that kind of email. I've talked about that in lots of other posts, so you can visit some of these to help determine what you specifically need: Startup CTO or Developer Startup Software Development – Do Your Homework Before You Develop Anything Key ingredients in the equation are: How complex is the system?

CTO Hire 211

CTO Hire CTO Coach Startup Equity 211

Startup Professionals Musings

APRIL 4, 2022

I often get asked about the real alternatives to bridge this valley, and there are some good ones I will outline here. The most effective new way of funding startups is to use online sites, like Kickstarter , to request donations, pre-order, get a reward, or even give equity. Nevertheless, it’s an option that doesn’t cost you equity.

Tips 104

Tips Startup Technical Review Equity 104

SoCal CTO

FEBRUARY 13, 2013

I did a presentation this week at Coloft that looked at how Non-Technical Founders can go about getting their MVP built. Purpose of an MVP and Defining the Right MVP I've really not talked as much about this in my blog even though its hugely important. It had a passionate group of 50 people attending. WordPress is pretty easy to hack.

Technical Review 338

Technical Review CTO Hire CTO Coach Software Review 338

Both Sides of the Table

JUNE 12, 2013

I was thinking about this yesterday because my assistant Tasha posted a link on Facebook to Paul C. ” In it he talked about how he gets daily emails asking for intros to Oprah (he does a lot of work with her) and his advice. Think about it – who knows angels the best? I wrote about there here. Be helpful.

Venture Capital 407

Venture Capital Press GRP Partners Blogging 407

Startup Professionals Musings

SEPTEMBER 25, 2016

If you have the urge to be an entrepreneur, I encourage you to think seriously about each of these, before you zero-in on one or two, and get totally discouraged if those don’t work for you. Trade equity or services for startup help. Another common example is exchanging equity for legal and accounting support.

Funding 107

Funding Startup Equity Examples 107

SoCal Tech Calendar

FEBRUARY 3, 2012

Entrepreneurs have choices about the kind of company they want to create. By sharing equity ownership with the rest of your team, you can gain critical advantages that help the company growand on your own terms. SAIC is one great example; there are now many more. See [link] (more)

Venture Capital 100

Venture Capital Equity Examples Entrepreneur 100

Startup Professionals Musings

MAY 8, 2022

For example, is the person who starts a new trend likely to be the one who controls it through the growth phase? Don’t wait for the harsh reality of the demanding business world to start thinking about these tradeoffs. You have very little money, and you don’t want to give away your equity.

Startup 130

Startup USC Entrepreneur Statistics 130