We had a great TTN session on Tuesday, beers at C’est What afterwards were much deserved. It was wonderful to see everybody and of course to re-start our sessions. As promised here are a series of links, posts and interesting tid bits relating to some of our discussions. See you at the next session. I will post the next session details shortly.
Compensation for your board
Brad Feld (Mobius Venture Capital) has a great post about board compensations and since he comes at this question from an entrepreneur’s perspective (in an early stage company), a board member and an investor / VC in companies that had board members at early stages he provides a balanced perspective.
His key points:
- 0.25% to 1.00% vesting annually over four years
- Single trigger acceleration on change of control
- Clear understanding as to how the vesting will work if the board member leaves the board
- No direct cash compensation
- Reimbursements for reasonable expenses
- Opportunity to invest in the most recent financing
Web 2.0 Economics
One of the questions post TTN was around Web 2.0 economics and exit strategies involving a GEMAYANI acquisition: again Brad Feld nails it in his post: "Raise $2 to $6 million to be spent over a two to three year period, with an exit of a $20 to $50 million sale to one of the GEMAYANI’s"
An Entrepreneur on Series A Financings: Niel Robertson – CTO of Newmerix writes about his experience with early stage venture financing. A good read.
Building the Team!
In this post, Bernard Moon writes about building a team from an entrepreneur’s perspective. Trust is essential. As far as I am concerned trust is the cornerstone on which your team is built. If you don’t have trust, you don’t have a team and once trust is broken your team is done for. Bernard Moon adds a few items to the trust mix:
- Find out what motivates people
- Check egos at the door.
- Keep the communications channels open.
- Recruit the best talent available
- Test drive your team future team member
10 Rules For Web Startups
Evan Williams of Odeo has a great ten rules list for web startups. Give it a good read.
And let me finish with Entrepreneurial Proverbs from Marc Hedlund. Read his post, read the comments too. This is a sweet, sweet, sweet post! Marc Hedlund is an entrepreneur-in-residence at O’Reilly Media; he actually just left the entrepreneur-in-residence program to start working on his venture full time.
Some of my favourite proverbs include:
- Momentum builds on itself — just start.
- If you keep your secrets from the market, the market will keep its secrets from you
- Work only with people you like and believe in
- Great things are made by people who share a passion, not by those who have been talked into one
And perhaps if you need a bit of structure to get you going, Getting Things Done is here to help. The basic principles and guidelines can easily be read here. I found that you don’t have to agree with all the approaches and recommendations. Pick what works for you and start improving how you work. Pen and paper work too.
Keep on trucking!