Startups

Dividing the Pie

Not a week goes by when someone doesn’t ask me about stock option grants to founders and employees of their startup. The questions range from how much to give to founders and when to vesting schedules and everything in between. This week the following blog post showed up in my Medium thread.

Growth or Profits? Yes.

One question that kept coming up this week was whether investors are more interested in a growth story or a path to profitability. Everyone, especially those from outside the U.S. are baffled by unicorns like Lyft and Uber that state in their respective prospectuses that they may never be profitable. As you can imagine the discussions and opinions on this topic are wide ranging.

Investing in People

I had a conversation recently with an old friend who has joined a new startup. His company is considering making a pretty big investment in its employees. He had remembered that I started my career at IBM some years ago and often noted how good the training was. At that time, we’re talking mid 80’s, the company invested countless hours and dollars in fairly comprehensive sales, service, and technical education. I spent the first year and half attending monthlong courses in IBM’s Atlanta and Dallas education centers. When I was back in NYC the company paid for me to take classes at the NY Institute of Finance.