Comments for traction matters...

Comment on It’s your EQUITY – manage it wisely… by Paul Mobley

Paul Mobley — Thu, 10 Sep 2009 01:11:38 +0000

Thanks for taking the time to write this excellent article about equity strategies at the startup phase. I agree with the recommendation that everyone, including founders, have to earn-in. Assigning a value to a company that has not been able to fully execute their strategy is very difficult and it’s a high risk investment. Often the founders have a harder time seeing this risk because they are too close to the action. Thank you for sharing your wisdom from past experiences.

Comment on On My Mind… by Cliff Allen

Cliff Allen — Fri, 10 Jul 2009 21:19:21 +0000

I agree that marketing data is at the heart of all sound marketing decisions. However, I’m surprised at how few companies actually use the marketing data they already have. And, that even fewer companies make an effort to collect data on their customers’ behavior.

Most Web sites use Google Analytics, but only a tiny number look at more than the top level reports.

But it’s not just small companies that avoid data. When Peppers and Rogers came out with the book Return on Customer, large consumer advertisers criticized it as unworkable, saying it’s impossible to collect the data and make the calculations.

It’s true that collecting marketing data and making complex calculations is hard. But that’s the arena where today’s competitors will achieve success. I’m sure your ventures will succeed because of that.

Comment on Obama mobile phone in Kenya – for real! by Paul Mucheru

Paul Mucheru — Tue, 02 Jun 2009 09:43:51 +0000

Its a great Idea for using Obama as a celebrity that might enhance the purchase of the phone Yep thats was a great idea

Comment on It’s your EQUITY – manage it wisely… by JR

JR — Tue, 26 May 2009 19:16:58 +0000

Thanks for the thoughtful post.

Do you have any ballpark figures for a pure equity comp sales director position at a pre-angel stage startup that is just about to launch V1 of its product? Salary/benefits are expected to kick in once revenues get off the ground in 6 months or so. About 4 people working on the project right now.

From the employee perspective, I’m looking at what I can make today in the market, say 160k/yr. Thats about $15k/mo fully loaded cost to the company. I’m investing time instead of cash in the company, and consider 4months no salary a 60K investment. I like the market prospects of the company and think a 1million valuation is fair given that nothing is proven. $60k/$1mil should give me a 6% stake in the company, that’ll only get diluted after the Angel, series A and possible B rounds.

What do you think of my logic arriving at 6%?

What kind of ballpark dilution generally occurs at Angel and series A?

Comment on It’s your EQUITY – manage it wisely… by gammill

gammill — Mon, 18 May 2009 16:36:10 +0000

thanks Ken…