| Topic Name: |
Which Career Path To VC |
| Message Name: |
short answers ... |
| Date Posted: |
12/30/2006 |
| In Reply To: |
Hi bkid, I was wondering if you or anyone else could voice their opinion on a couple of things with regards to the above opportunity.
1) They currently seem to be hesitant to budge above the 20% ownership mark combined with a tiny salary that will NOT cover my living expenses. The expectation being that I would work on the side to cover my living expenses. My initial offer was at 35% ownership and a modest $3K/month salary to cover living expenses. Do you get the feeling that they are in too desperate/too cash poor of a situation and I should run the other way, or am I being too greedy and should be expected to bring more to the table with regards to starting a business?
2) The two people that I would be starting this business with are in a romantic relationship and are considering getting married. Would you consider this a deal breaker or would you look for ways set things up so that if the romantic relationship falls apart the business doesn't?
3) Any suggestions on ways to find and approach start-ups? |
| Message: |
here's my take -
1) I don't usually comment on compensation cos' different businesses have different cash requirements and development plans going forward. But in general, stock options plans are used to motivate and incentivise employees. So to speak, you can always argue for more ownership stake if you fulfill certain milestones (e.g. hit revenue of 5M, etc)?
Some entrepreneurs started off selling their house/cars/dogs but I would say the terms are getting better for founders for recent boom months in the VC markets. Bear in mind - would you be motivated at all to work hard in the day when you have to put up in a slum, eating plain boiled potatoes at night?
2) I don't think this is really going to be a real dealbreaker - if u have been in the valley, you would have seen successful husband-wife partnerships (ok, I have seen 1 so far). But mixing relationship with business is always messy and things can go unprofessional. Is there a dominant party between the 2? Being perfectly professional, you could also work out some clause in the contract to protect ur interests should they fall out.
3) A few ways - you can send your CVs to the VC firms, let headhunters to peddle your CV, attend trade shows/conferences, networking with alumni/contacts. Operational experience is almost gold in our trade. That's what we look for most time (besides chemistry).
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