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.
The Sunday New York Times featured an article about how entrepreneurs are resisting turning to venture capitalist for money. As you can imagine the article has generated a lot of buzz and the usual “piling on” that follows a media attack on a group, especially a wealthy group. The article describes how venture capital is bad for some startups and attempts to provide some reasons for this.
A few years ago I began working on a new class designed for students who wanted to learn about basic financial accounting, raising money, and putting that money to work building value in their business. I met with entrepreneurs and asked what they wished they had known about finance before starting their businesses. Then I met with investors and asked what they had wished entrepreneurs better understood about finance before getting funded. It was from these conversations that I designed the curriculum that would become Entrepreneurial Finance - a class that has been oversubscribed every semester that it has been offered at Babson College - even when it had an 8am start during senior spring!