10 Key Traits Of An Ideal Entrepreneur Partner

Photo of Chairman of Google Eric Schmidt with Sergey Brin and Larry Page via Wikipedia.

Photo of Chairman of Google Eric Schmidt with Sergey Brin and Larry Page via Wikipedia.

A while back I talked about how and where to find a co-founder in “For a Startup, Two Heads are Always Better Than One”. The feedback was good, but some readers asked me to be a bit more specific on attributes that might indicate an ideal startup partner. Even if you are looking in all the right places, it helps to know what you are looking for.

In this context, I’m broadening the definition of partner from co-founder to “business partner.” The reason is that good attributes apply equally well to “external” partners, as they do to internal partners, like a co-founder or CTO. A good overall example is the synergy between Google co-Founders Sergey Brin and Larry Page, as well as with Chairman Eric Schmidt. Read more

Thinner Slices of an Extra-Large Pizza: Mathematical vs. Economic Dilution of Startup Equity

slice of pizzaBack from a hiatus, it’s time to venture forward once more.  I appreciated hearing from those who asked about upcoming posts.  Thanks in particular to the reader who reminded me that Part II of “Bored” of Directors Can Become Clash of Titans is still in the queue.

Let’s get right down to business: Dilution of founders’ and other early shareholders’ equity in startups is frequently a subject of intense interest and debate.  Expert commentators including David S. Rose have written plenty on the subject; in fact, while I was editing this piece, David published a new post here at Gust: How does equity dilution work for startups?  David’s earlier answer to a Quora question, together with an overview by Rincon Ventures’ Jim Andelman, prompted my renewed interest in the subject.

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Antone Johnson , Founding Principal, Bottom Line Law Group
April 11th, 2014

How does equity dilution work for startups?

Equity dilution works when the same pie is divided among more people. The Founder of a company starts by owning all the shares representing ownership of the company. Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.) Read more

Team Member Competency Is Critical To Your Startup

Image via Amazon.com

Image via Amazon.com

Most people think that the Peter Principle (employee rises to his level of incompetence) only applies to large organizations. Let me assure you that it is also alive and well within startups. I see startup founders and managers who are stalled transplants from large organizations, as well as highly-capable technologists trying to start and run a business for the first time.

Forty years ago, in a satiric book named “The Peter Principle”, Dr. Laurence J. Peter first defined this phenomenon. The principle asserts that in a hierarchy, members are promoted so long as they work competently. Sooner or later they are promoted to a position at which they are no longer competent, and there they remain, unless they start or join a startup to get the next level. Read more

What is the best approach to get funding for my startup?

When you create a profile on Gust, you immediately get emailed a link for a free download of Bill Payne’s excellent book “The Definitive Guide to Raising Money from Angels”, which is an excellent overview of the whole process. Good luck!

*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *