Venture Capitalists, and Working in a Startup for Stock
January 22, 2010 5:22 PM Subscribe
Have you had any experience working for stock options in a startup or being a VC or dealing with a VC? Some questions inside about evaluating the promise of a startup company, and working for stock options...
posted by oneous to Work & Money (11 answers total) 2 users marked this as a favorite
I've recently started working for a tiny startup (in enthusiest/industrial robotics) that offered to pay me in stock options. The founder has been spending *full time on this for a couple years*, and he's very enthusiastic about the marketability of the product. But there's no management team, and he seems to think that it's best to not worry about applications of the product, and "let users figure that out." So I'm eminently planning to jump ship.
0. Any advice for what to say/not to say in order to stop working for them and get the message across about what I think they're missing, but keep the door open for the future IF they get more organized?
1. Would you absolutely require a typical business plan?
2. Would you demand a combo of stock+cash even if nobody else in the company gets paid?
3. What kinds of market/company data would you absolutely need to know before deciding to invest significant time in a startup-for-stock?
4. What kinds Legalese would you require in your consulting contract to keep your options open down the road and limit theirs?
5. Bonus: If you've been a VC or dealt with one: What are your last-ditch criteria to decide if the company has any promise?