Monday, October 17, 2011

Startup Equity Survey: Initial Results

With 19 initial responses to my startup equity knowledge survey, I've posted below the initial results, above. Several key takeaways:

-Over 40% of startup employees don't know what % of equity they have. Imagine if 40% of stock market investors didn't know how many shares outstanding there were in the publicly-traded companies they were investing in...
-73.7% don't know what preference structure their startup has. That's like not knowing what your insurance deductible is.
-58% of startup employees don't know how their % equity compares to others in similar roles. Given that the same group expects to make $100K-$1M on equity while working at their startup, you'd think know the comps would be important in negotiating, right?
-Over half don't know what a trigger is, and only one quarter have one. People - you may as well get down on your hands & knees and pray before signing your offer letter, 'cause that's how much control you'll have over the outcome if you don't understand triggers.
-68% of startup employees have had one or more 'exits'

Friday, October 14, 2011

Startup Equity: Do You Know What You Need To Know?

Fifteen years in startups (& plenty of mistakes) taught me how to maximize startup equity. See what you do/don't know about startup equity by taking this survey!

Wednesday, October 12, 2011

U.S. Large & Small Cap Internet Stocks

Above is a list of all large ($1B+) and small (<$1B) U.S. Internet stocks. Things that caught my eye:

1. Price to Sales ratios: 4.38 for large caps and 2.06 for small caps.

2. Two government-focused companies skyrocketed up the Small Cap list: Liquidity Services (LQDT) and NIC Inc. (EGOV). It should be no surprise that as government becomes a bigger a bigger component of GDP, Internet companies focused on government should do well.

3. Big winners in market cap growth were Amazon, Priceline, Shutterfly and LivePerson

4. All the Internet market cap growth has occurred in the private markets rather than public. With the exception of LinkedIn, the massive growth Internet duo of Facebook & Zynga have done their thing offline.

Google Analytics Alternative