Archives / November, 2007

Ad Revenue Models

Today’s guest blogger is Matt McCall of DFJ Portage.  Matt was a co-investor with us in FeedBurner and sat on the board with me.  He writes a great blog called VC Confidential.  When the following question appeared, we did the super efficient thing and forwarded it to Matt to answer.  Following is his response which…

The Wizard on Early Stage Board of Directors

Dick Costolo (aka Mr. Ask the Wizard) – the founder/CEO of FeedBurner (now a Googler) has another outstanding post up titled Early Stage Board of Directors.  In his delicious way, Dick talks through how he thinks about the potential composition of a Series A board and gives entrepreneurs some ammunition for their potential investors when…

Should Startups Invest In Patents?

One of the issues that we debate internally is regarding the value of patents.  We’ve written a lot about the subject over the years and those of you who are regular readers know that Brad hates all software patents, and I’m fairly close to that line as well.  Last night, our friend Rob Shurtleff sent…

What Are Typical Employment Contract Terms and Severance Benefits for a Startup?

Q:  I have read the your article on typical compensation for senior management of venture backed companies.  There was no mention of severance and length of contract terms. Can you opine? A: (Jason)  Most everyone in the startup world is an at-will employee and does not have an employment contract.  For those of you unfamiliar,…

SEC Announces Rule Change for Private Companies

One company that draws a lot of questions is Google.  Specifically, folks have questions regarding the fact pattern of their initial public offering.  We weren’t investors in the company, so we generally don’t get involved answering these, but today my friends Mike Sullivan and Julia Vax from Howard Rice sent me this nugget:  “Google’s IPO…

Furqan Nazeeri – EIR Blogger

We are always diligently on the lookout for new VC-related blogs for you to add to your reading list.  Today we discovered Furqan Nazeeri, an entrepreneur-in-residence at Softbank Capital Partners.  I came across Furqan while reading Found+Read’s article titled A few more things no one tells you about VC…  Furqan had a post recently titled…

Compensation In A Very Early Stage Company

Q: What should my compensation be?  I’m going to be the first full-time employee of a new startup.  As it is so early stage, it is hard to say what the title is, but the role is certainly similar to a CMO or VP BizDev type person.  The company just raised around $500k in an…

Should You Exercise Your Stock Options

Dave Naffzinger’s post – Startup Stock Options: Should you Exercise your Options? is a must read post for anyone that has been granted a stock options.  I’ve worked with Dave in two companies and he’s a star.  This post is dynamite and while it doesn’t tell you a specific answer (there never is a "correct…

Don’t Ask For An NDA

I’ve written about NDA’s over on Feld Thoughts – my most popular post on this is Why Most VC’s Don’t Sign NDAs.  Today’s post of the day is from VentureHacks and is titled What should I send investors? Part 3: Business Plans, NDAs, and Traction.  The whole post is worth a read even though the…

Generic Range of Equity Desired By a VC for Round 1 or 2

Jason and I welcome Matt McCall from DFJ Portage as today’s guest VC blogger.  We sent Matt one of our backlog questions – his response is below.  Matt also posted it on his excellent blog under the title How VC’s Determine % Ownership Thresholds. Question: What’s a completely generic range of equity a VC typically…