{"id":8418,"date":"2016-08-20T13:29:47","date_gmt":"2016-08-20T17:29:47","guid":{"rendered":"https:\/\/www.duck9.com\/?p=8418"},"modified":"2016-08-20T13:37:10","modified_gmt":"2016-08-20T17:37:10","slug":"sweat-equity","status":"publish","type":"post","link":"https:\/\/www.duck9.com\/blog\/sweat-equity\/","title":{"rendered":"Sweat Equity"},"content":{"rendered":"
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By Larry Chiang<\/span><\/div>\n

<\/span><\/div>\n
What VCs pay attention to. <\/span><\/div>\n
What sweat equity really means. <\/span><\/div>\n
How sweat equity really works. <\/span><\/div>\n
How things might turn out. <\/p>\n

<\/span><\/p>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/20\/16, 9:42 AM<\/font><\/a><\/div>\n
Sweat equity has 12 very common patterns. Here’s what VCs pay attention to (bc we’re too dumb to get tech)<\/p>\n

START. #LarryChiang<\/a> @LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/p>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 1:05 PM<\/font><\/a><\/div>\n
Where does all that #SiliconValley<\/a> sweat equity come from!?!<\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


A lot of people definitely lose. <\/span><\/div>\n


<\/span><\/p>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:17 PM<\/font><\/a><\/div>\n
Attrition is like breakage. Someone wins when breakage happens. Sum, lose. #SweatEquity<\/a>. @LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/p>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:20 PM<\/font><\/a><\/div>\n
There is a nice chunk of equity when you cofound a company with a sitting GP (vc). #nonEmployeeCofounder<\/a> pic.twitter.com\/2socCxt7qM<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:24 PM<\/font><\/a><\/div>\n
3 co-founders meshing is like a manage a trois where no one feels left out. Can’t happen. #threeWay<\/a> #WrongWay<\/a> #cs183team<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/20\/16, 9:45 AM<\/font><\/a><\/div>\n
For example, THIS manage a trois in bed. {if you’re not fluent in French like me it means 3-way. Applies to founders pic.twitter.com\/rKS7vBzqFr<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


<\/span><\/div>\n

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<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:29 PM<\/font><\/a><\/div>\n
“Firing founders. Trust me, your equity evaporates after the [eventual & amorphous] recap.” <\/p>\n

—@LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/p>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:30 PM<\/font><\/a><\/div>\n
Never trade your dog for someone else’s cat. {Aka selling your startup for all stock}<\/p>\n

#EquityLost<\/a>
@LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:32 PM<\/font><\/a><\/div>\n
A lot of the value lies in the trash heap. #cs183e<\/a>. Edit! #SweatEquity<\/a><\/p>\n

–@LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


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<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nAsse9 Austin Secret (@asse9<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/20\/16, 9:51 AM<\/font><\/a><\/div>\n
Glorified “scraping”.
Repurposed momentum. 
Existing parades.
All, good<\/p>\n

—@LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/p>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:33 PM<\/font><\/a><\/div>\n
“Buy stock in you own startup whenever you can.”<\/p>\n

–@LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nKeith Teare (@kteare<\/a>)<\/b><\/td>\n<\/tr>\n
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3\/11\/15, 11:06 AM<\/font><\/a><\/div>\n
This is spot on – @JoshKopelman<\/a> @firstround<\/a> What the Seed Funding Boom Means for Raising a Series A \u2013 firstround.com\/review\/what-th\u2026<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/p>\n\n\n\n\n
<\/span><\/td>\nRobin Klein (@robinklein<\/a>)<\/b><\/td>\n<\/tr>\n
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4\/22\/15, 1:16 AM<\/font><\/a><\/div>\n
Silicon Valley is broken – how to fix it>>a cold hard look at the Series A\/B crunch from web veteran, friend @kteare<\/a>  us6.campaign-archive2.com\/?u=8454d2b163d\u2026<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:33 PM<\/font><\/a><\/div>\n
“Buy stock in you own startup whenever you can.”<\/p>\n

–@LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


<\/span><\/p>\n


<\/span><\/font><\/div>\n\n\n\n\n
<\/span><\/td>\nAsse9 Austin Secret (@asse9<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/20\/16, 10:04 AM<\/font><\/a><\/div>\n
Like series B, 2nd round of Botox…, can get messy. VCs a problem bc u can’t just do it One round; 1x twitter.com\/kteare\/status\/\u2026<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


<\/span><\/font><\/p>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:34 PM<\/font><\/a><\/div>\n
Remember that team anti Christ is using the wrong logo. The upside down cross signifies how 3 mentees died inverted. Like Maverick #topGun<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:37 PM<\/font><\/a><\/div>\n
For Peter’s sake, google what #cs183clawback<\/a> is. Uber #nonEmployeeCoFounder<\/a>, did. U can too<\/p>\n

–@LarryChiang<\/a> LUVS #cs183s<\/a>‘<\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:39 PM<\/font><\/a><\/div>\n
If and when you do get fired from your own startup, execute the @LarryChiang<\/a> countermeasures. Don’t go on vacay. #cs183vc<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:42 PM<\/font><\/a><\/div>\n
The best sweat equity is from killing five birds with one stone. Confucius says, @LarryChiang<\/a> tweet(ed)<\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:44 PM<\/font><\/a><\/div>\n
When u quit a great company with a great CEO, he gives you a million for ~25% and shakes your hand, out-the-door #sweatEquity<\/a><\/p>\n

–@LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:46 PM<\/font><\/a><\/div>\n
Remember, your planet has 90+% of the galaxy’s liquid water. That #sweatEquity<\/a> is all house money. #ch2<\/a><\/p>\n

–@LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:48 PM<\/font><\/a><\/div>\n
Sweat equity. Even you lapdog wants a JOB so put that canine on a vesting sched and start up. @LarryChiang<\/a> pic.twitter.com\/mOkY6bxeET<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/p>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:52 PM<\/font><\/a><\/div>\n
Sweat equity. Import from Vancouver “Sumi”, ‘Yumi’, Yoshi, Amelie, Ying and Astro. Overstay #df16<\/a> <\/p>\n

@LarryChiang<\/a> pic.twitter.com\/bnbvIq9Chr<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 4:56 PM<\/font><\/a><\/div>\n
If your two cofounders up and quit and go to Harvard Business school, go buy 20 stuffed animals. 
@LarryChiang<\/a> pic.twitter.com\/PGCmccjoOd<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/p>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/20\/16, 9:40 AM<\/font><\/a><\/div>\n
SWEAT EQUITY does not mean cash poor. Done correctly, you crank cash while you build equity sans sweat
—@LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

<\/span><\/div>\n\n\n\n\n
<\/span><\/td>\nLarry Chiang (@LarryChiang<\/a>)<\/b><\/td>\n<\/tr>\n
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8\/19\/16, 1:34 PM<\/font><\/a><\/div>\n
Sweat equity has about a dozen very common patterns. Here’s what to pay attention to…<\/p>\n

END. #LarryChiang<\/a><\/span><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


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<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By Larry Chiang What VCs pay attention to.  What sweat equity really means.  How sweat equity really works.  How things might turn out.  Larry Chiang (@LarryChiang) 8\/20\/16, 9:42 AM Sweat equity has 12 very common patterns. Here’s what VCs pay attention to (bc we’re too dumb to get tech) START. #LarryChiang @LarryChiang Larry Chiang (@LarryChiang) 8\/19\/16, 1:05 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8418","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/8418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/comments?post=8418"}],"version-history":[{"count":0,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/8418\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/media?parent=8418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/categories?post=8418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/tags?post=8418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}