Asher Siddiqui’s Post

Pear VC Startup Equity Calculator for Early Hires Pear VC head of talent Matt Birnbaum created this calculator to determine the equity for early hires. You can read more here How to structure startup equity for early hires https://lnkd.in/ggmpT5-Y https://lnkd.in/gjsvths6

Market adversities can become great opportunities for SaaS founders. Some of the best startups of all time grew during the toughest of times - post the Dotcom bust and just after the 2008 recession! By keeping a burn multiple of less than one, businesses can grow profitably with a capital-efficient backbone and thrive even in the harshest winters. #SaaSAdvantage #SaaSAdvantage #BusinessResilience #Funding

A question I get asked often: “How should startup founders divide equity?” Per Carta, the median splits in 2023: → 2 Founders: 51% / 45% → 3 Founders: 47% / 33% / 17% → 4 Founders: 36% / 25% / 19% / 10% From my perspective, splits often change over time as cofounders join later. No matter what, have this equity chat with your cofounders early. Wdyt?

Founders - here is a guide to help you raise capital. 💰 (I'm thankful to Crunchbase for putting it together) Must read pages: ⤷ 𝗦𝗹𝗶𝗱𝗲 𝟱 - VC Rounds anatomy (investor types, company stage, amounts, funds use)  ⤷ 𝗦𝗹𝗶𝗱𝗲 𝟳 - Most common types of investors (Angel, VC, Family Office) ⤷ 𝗦𝗹𝗶𝗱𝗲 𝟮𝟬 - What should be on your pitch deck?  🔔 Follow me (Hugo Rauch) and join a community of startups addicts

5 Areas you should be asking questions about before investing in an early stage startup. To access the full list of questions subscribe to our newsletter: https://lnkd.in/e4_xqsw5 To get started on your angel investing journey today, join the waitlist for the next cohort of our Live Course: https://lnkd.in/e64Pkmdn

Case Study: How PitchBook’s VC Exit Predictor is Changing Startup Evaluations

True, Helping Founders adhere to Financial Discipline is the most important part of a Startup Advisor. As a Startup Advisor we have successfully turned around many startups, guided their founders through tough times and helped them stay grounded when they were having extra pile of cash / surplus liquidity. We have helped founders to take calculated risks, make bold business decisions and yet stay financially disciplined, this has resulted in creating Growing, Sustainable & Profitable Businesses.

90% of startups fail due to team issues. It’s a stat we’ve seen in a ton of presentations, but it doesn’t really say much. The other day we came across a study looking into the link between founder personality and a startup’s success or failure. They used what founders were posting on social media to build a predictive model. The big takeaway: traits like openness and agreeableness are key for raising funds, as they help founders seem innovative and approachable to investors. But being overly conscientious can be a long-term hurdle. Anxiety and intensity, on the other hand, have a negative impact at every stage, reducing the chances of success and opportunities for acquisition or IPO. In fact, some VCs are now doing personality assessments during due diligence. Check out the paper here: https://lnkd.in/e7xxGXGX

For early-stage founders, two hot topics always arise: how to split equity and vesting schedules. Here’s what the data shows: 1. Equity Splits: The majority of founders do not split equity equally. Among two cofounders, 56% opt for an uneven split (like 55/45). This trend is even stronger with teams of 3-5. While a 50/50 split works well for some, it's crucial to have honest discussions about equity early on. 2. Vesting Schedules: Every founder needs a vesting schedule—this is non-negotiable. Without it, the risk of a founder leaving can make the startup unattractive to investors. While a 4-year vesting period is standard, 5 or 6 years is also becoming common. This data comes from 7,764 startups on Carta, founded between 2019-2023, pre-funding. Thanks Peter Walker & Carta for curating these valuable insights.