As we continue our series on Compensation, let’s look at some recent compensation trends. In general, while compensation is on the rise, the rate of increase slowed between 2005 and 2006. Founder compensation (in whatever role they play) is rising faster than non-founder compensation. There are some theories on this including (a) founders are becoming […]
Q: Have you experienced a company which grows along nicely, but does not offer a liquidity event? In the funding agreement, there is a clause for redemption rights. Is this used so that the VC can get out of the investment? A: (Jason). Yes, we’ve experienced companies growing nicely without liquidity events. And yes, we […]
As part of your offer, there will likely be an equity component (if there isn’t, your first question after receiving the offer should be “so – what equity are you offering me as part of this package?”) The equity component will either be a grant of stock options or restricted stock – both with some […]
We get a lot of questions about open source software. Today at our Boulder OpenCoffee Club meeting, we had a presentation by Doug Young regarding his thoughts on open source issues that developers face. It was a great discussion. (Unfortunately) every developer needs to keep their open source “house” in order and to that affect, […]
Along the lines of our last compensation post, cash is at an extreme premium in pre-VC funded companies. In that vein, you might be presented with a situation where you “defer some of your salary” until after the first institutional financing. This means that you are theoretically earning this portion of your salary and once […]
You’ve started your own business and you hope to one day get funded by a reputable VC (yes – there are a few of them.) You’ve got a great idea, your business plan is almost drafted, and you’ve self funded the company along with another co-founder out of savings and credit cards. You think you’ll […]
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