Early-stage startup founders have only a few ways to recruit and retain employees:
- Offer a competitive salary
- Create a role that leverages your interests/talents
- Give them a stake in the company.
In most cases, equity will not leave employees with substantial wealth. But even the most embittered worker will think twice about leaving a job before they are fully invested.
In a TC+ guest post, Kirsten Prost, vice president of VC/PE firm Tercera, presents detailed steps for designing your equity program.
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Your guide includes square brackets and multipliers for contributors at different levels, plus fictional examples that founders can use for modeling, and tips that will help employees understand the value of their participation.
Speaking as a veteran of many early-stage startups: Entrepreneurs love to be seen talking about fostering an ownership mindset, but if this is going to be more than happy conversation, you’ll first need a transparent equity program.
We will be off Monday, January 17th to celebrate Martin Luther King Jr.
Thanks so much for reading, and have a great weekend!
Senior Editor, Ploonge+
Dear Sophie: Do we need a visa to explore the American market?
My husband and I plan to visit our daughter during spring break. (She is an F-1 international student at a US university.)
Between spending time with our daughter and sightseeing, we would like to explore the feasibility of expanding our business in the US.
Do we need a special visa to do this?
– Multitasking mother
Unicorn exits auspices badly as Justworks delays IPO, citing ‘market conditions’
There’s a growing gap between the public and private markets’ valuation of tech startups, and Justworks’ decision to delay its IPO may well be an indicator of things to come, writes Alex Wilhelm.
Software companies are getting hammered in public markets, while private markets continue to maintain their enthusiasm for tech startups.
That difference of opinion, writes Alex, could end badly for richly valued startups looking to exit this year.
“The delay in the Justworks IPO indicates that the gap in enthusiasm between private markets and their public counterparts is large. And for expensive unicorns still bleeding money, this is terrible news.”
Blockchain gaming survey: 7 investors discuss NFT regulation, opportunities and hype
Game distribution platform Steam banned blockchain-based games in October 2021: all titles incorporating NFTs or cryptocurrencies were summarily booted into the service.
Meanwhile, in Axie Infinity, an NFT-based online game, new players are paying hundreds of dollars to acquire mythical pets and love potions.
Blockchain games are making inroads with some consumers, but given the lack of regulatory guidance and the speculative nature of many cryptocurrency holdings, what do investors think?
To find out, we surveyed seven that are active in space:
- Anton Backman, Director, and Kenrick Drijkoningen, General Partner, Play Ventures
- Banafsheh Fathieh, Head of Investments, Americas, Prosus Ventures
- Josh Chapman, Managing Partner, Konvoy Ventures
- Eddie Thai, General Partner, 500 Startups and General Partner, Ascend Vietnam Ventures
- Beryl Li, co-founder of Yield Guild Games
- Rajul Garg, Founder and Managing Partner at Leo Capital
Setting up high converting lead magnets that add value
It’s one thing to get a potential customer to visit your website, but convincing them to grab your wallet or share your phone number is overkill.
As consumers gain greater control over their privacy, Aleksandra Korczynska, CMO at GetResponse, says marketers who align lead generation with their prospects’ goals will gain a significant advantage.
“The key is to build a foot-in-the-door technique for ongoing engagement – lead magnets,” she says.
The SPAC boom was a failure, right?
Special-purpose acquisition companies took 2020 and 2021 by surprise, allowing a large group of companies to go public.
But, as they say, if something sounds too good to be true, it probably is.
The disappointment is not limited to a single industry, writes Alex Wilhelm in The Exchange. Real estate technology, fintech, media and personal mobility companies have seen large dropouts since their debut.
“I would venture that we have collected enough data to call the SPAC boom a failure.”
Despite the play-to-win angle of blockchain games, I prefer to pay
Paying users to play is part of the unique selling proposition of blockchain games, but is that the point of entertainment?
Senior editor Alex Wilhelm says he enjoys the fun and excitement associated with playing against other people online, but “I am pessimistic about cryptocurrency games as they currently exist for a few reasons, even if the incentives are more aligned than they seem to us.” traditional games”.
Why CNET co-founder Halsey Minor is bullish on NFTs
Halsey Minor is best known as a co-founder of CNET and an early investor in Salesforce.com, but in recent years he has been working with cryptocurrencies.
After three decades of developing content, he now leads Vivid Labs, which operates a proprietary NFT publishing platform.
“Just as I recognized the massive explosion of the internet many years ago, I see crypto and NFTs as the technology of the future,” Minor said in an interview with TC+ that includes advice for founders looking to raise capital for web3 projects.
Data shows 2021 was a crazy and record year for venture capital
Next week, Anna Heim and Alex Wilhelm plan to present a series of stories for The Exchange examining industries and trends in different regions. To build a foundation for that report, this week they looked at a record year for venture capital.
In 2021, venture capital investment totaled $621 billion, up 111% from the year before, according to CB Insights. Crunchbase estimates the value at $643 billion.
“Regardless of the number we choose, it is clear that more than half a trillion dollars was invested in high-growth private companies last year – a doubling of what the same asset class achieved in 2020.”