Comments on: Kudos for Equity http://igniter.com/post363 Building stuff for a better future, sooner. Sat, 07 Aug 2010 07:46:11 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Venture capital is not broken. But it could use an alternate incentive structure. | Unstructured Thoughts by Taylor Davidson http://igniter.com/post363/comment-page-1#comment-202 Venture capital is not broken. But it could use an alternate incentive structure. | Unstructured Thoughts by Taylor Davidson Thu, 19 Feb 2009 16:04:27 +0000 http://igniter.com/?p=363#comment-202 [...] 1) Compensation: Convertible Preferred Shares granted under a Kudos Model. [...] [...] 1) Compensation: Convertible Preferred Shares granted under a Kudos Model. [...]

]]> By: Igniter http://igniter.com/post363/comment-page-1#comment-392 Igniter Fri, 30 Jan 2009 08:58:26 +0000 http://igniter.com/?p=363#comment-392 you tell us :-) you tell us :-)

]]> By: Taylor Davidson http://igniter.com/post363/comment-page-1#comment-391 Taylor Davidson Fri, 30 Jan 2009 08:47:46 +0000 http://igniter.com/?p=363#comment-391 1. Solid justification: framing the discussion around valuation/distribution events is a solid way to keep contributors focused on creating value rather than constantly managing to justify value creation. Especially since the value created around knowledge work is so variable, adopting longer timeframes will help capture a good measure of time. <br><br>My only thought is that the model might not scale as the number of contributors gets larger and as more contributors create value "in the middle"; but then perhaps that's not a concern, that it's only necessary to compensate with equity long-standing contributors.<br><br>2. I'm curious how the option allocation could / should work: does it mean creating a large option pool? How can the ideal be executed using available corporate structure tools?<br><br>3. Scaling might be the most important test of the model; perhaps the nature of the way the value is created and the tools used will enable the value distribution process to scale in the same way the value creation process will scale. In any case, it will be fun finding out...<br><br>And as you know, I'm interested in helping with the Kudos process in whatever way the team feels is valuable... 1. Solid justification: framing the discussion around valuation/distribution events is a solid way to keep contributors focused on creating value rather than constantly managing to justify value creation. Especially since the value created around knowledge work is so variable, adopting longer timeframes will help capture a good measure of time.

My only thought is that the model might not scale as the number of contributors gets larger and as more contributors create value “in the middle”; but then perhaps that's not a concern, that it's only necessary to compensate with equity long-standing contributors.

2. I'm curious how the option allocation could / should work: does it mean creating a large option pool? How can the ideal be executed using available corporate structure tools?

3. Scaling might be the most important test of the model; perhaps the nature of the way the value is created and the tools used will enable the value distribution process to scale in the same way the value creation process will scale. In any case, it will be fun finding out…

And as you know, I'm interested in helping with the Kudos process in whatever way the team feels is valuable…

]]> By: Igniter http://igniter.com/post363/comment-page-1#comment-170 Igniter Fri, 30 Jan 2009 03:58:26 +0000 http://igniter.com/?p=363#comment-170 you tell us :-) you tell us :-)

]]> By: Taylor Davidson http://igniter.com/post363/comment-page-1#comment-169 Taylor Davidson Fri, 30 Jan 2009 03:47:46 +0000 http://igniter.com/?p=363#comment-169 1. Solid justification: framing the discussion around valuation/distribution events is a solid way to keep contributors focused on creating value rather than constantly managing to justify value creation. Especially since the value created around knowledge work is so variable, adopting longer timeframes will help capture a good measure of time. <br><br>My only thought is that the model might not scale as the number of contributors gets larger and as more contributors create value "in the middle"; but then perhaps that's not a concern, that it's only necessary to compensate with equity long-standing contributors.<br><br>2. I'm curious how the option allocation could / should work: does it mean creating a large option pool? How can the ideal be executed using available corporate structure tools?<br><br>3. Scaling might be the most important test of the model; perhaps the nature of the way the value is created and the tools used will enable the value distribution process to scale in the same way the value creation process will scale. In any case, it will be fun finding out...<br><br>And as you know, I'm interested in helping with the Kudos process in whatever way the team feels is valuable... 1. Solid justification: framing the discussion around valuation/distribution events is a solid way to keep contributors focused on creating value rather than constantly managing to justify value creation. Especially since the value created around knowledge work is so variable, adopting longer timeframes will help capture a good measure of time.

My only thought is that the model might not scale as the number of contributors gets larger and as more contributors create value “in the middle”; but then perhaps that's not a concern, that it's only necessary to compensate with equity long-standing contributors.

2. I'm curious how the option allocation could / should work: does it mean creating a large option pool? How can the ideal be executed using available corporate structure tools?

3. Scaling might be the most important test of the model; perhaps the nature of the way the value is created and the tools used will enable the value distribution process to scale in the same way the value creation process will scale. In any case, it will be fun finding out…

And as you know, I'm interested in helping with the Kudos process in whatever way the team feels is valuable…

]]>