{"id":28227,"date":"2024-07-26T23:56:00","date_gmt":"2024-07-26T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=28227"},"modified":"2026-04-08T10:46:21","modified_gmt":"2026-04-08T02:46:21","slug":"startup-issues-people-care","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/","title":{"rendered":"Startup issues that most people care about"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/#The_importance_of_venture_capital\" >The importance of venture capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/#How_to_value_a_startup\" >How to value a startup?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/#Things_to_note_when_starting_a_new_startup\" >Things to note when starting a new startup<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/#Employees_stock_options\" >Employee&#8217;s stock options<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/#Companies_go_public\" >Companies go public<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/#The_only_way\" >The only way<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/#Pros_and_cons_of_going_public\" >Pros and cons of going public<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/#Factors_that_hinder_companies_from_going_public\" >Factors that hinder companies from going public<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_importance_of_venture_capital\"><\/span>The importance of venture capital<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Venture capital is a perspective from which to observe this phenomenon. Although venture capital accounts for a small proportion of the total social investment in the United States, it has a very strong role in promoting the industrial development and economy of the United States.<\/p>\n\n\n\n<p>Of the more than 1,400 companies listed since 1974, as many as 43% originated from venture capital investment. The output of enterprises receiving venture capital accounts for up to 11% of the gross national product.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_value_a_startup\"><\/span>How to value a startup?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Generally speaking, venture capital companies have the following methods to value a startup:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Last round of financing<\/li>\n\n\n\n<li>Comparable company method: that is, referring to the valuation of similar companies or competing companies<\/li>\n\n\n\n<li>Option pricing model<\/li>\n<\/ul>\n\n\n\n<p><strong>Note<\/strong>: For relevant details, please refer to the section &#8220;Learning Wall Street to Use 3 Indicators to Give Reasonable Valuations to New Ventures&#8221; starting from 4-3 in my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010889106\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of Super Growth Stocks Investing<\/a>&#8220;, starting on page 282.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Things_to_note_when_starting_a_new_startup\"><\/span>Things to note when starting a new startup<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Type of company: partnership or limited company.<\/li>\n\n\n\n<li>Rights and obligations of founders: including shares, resignation, restrictions.on share transfer, and division of rights and obligations of co-founders.<\/li>\n\n\n\n<li>Stock options: including stock option vesting periods, restrictions, transfers, etc.<\/li>\n\n\n\n<li>Intellectual property<\/li>\n\n\n\n<li>Employee stock options: This is important and discussed below.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Employees_stock_options\"><\/span>Employee&#8217;s stock options<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The employee stock option pool is generally 15% of the company&#8217;s total shares, and the period for active employees to exercise options is generally four years.<\/p>\n\n\n\n<p>The period for employees to exercise options after leaving the company has been extended from the usual three months to a maximum of 7 to 10 years.<\/p>\n\n\n\n<p>For this topic, please see my post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/31\/employee-stock-options\/\">Pros and cons of employee stock options as compensation<\/a>&#8220;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Companies_go_public\"><\/span>Companies go public<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_only_way\"><\/span>The only way<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>IPO is the only goal of most startup companies. The time set is usually to go public within ten years. Those who can go public within four to six years are considered to be fast progressing new companies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pros_and_cons_of_going_public\"><\/span>Pros and cons of going public<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For more in-depth information on this topic, please see my post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/15\/why-a-company-go-public\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why a company go public?<\/a>&#8220;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factors_that_hinder_companies_from_going_public\"><\/span>Factors that hinder companies from going public<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>With the development of the capital market in recent years, companies do not necessarily need to be listed, and there are many factors that can hinder companies from going public. These factors include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The cost of listing a company: This is a considerable financial burden for new companies.<\/li>\n\n\n\n<li>Wealth and asset managers, whose funds are getting larger, favor large-cap stocks because they can have a clear impact on the performance of their funds. The result is that stocks of smaller companies are less popular.<\/li>\n\n\n\n<li>Indexes, or various ways of calculating performance in capital markets, work against small caps companies.<\/li>\n\n\n\n<li>The methods of raising funds are becoming more and more diversified, and listing companies is no longer the only way to raise funds.<\/li>\n\n\n\n<li>Listed companies are under too much pressure and must withstand various tests from shareholders, market and the public.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"178\" height=\"100\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2024\/07\/startup-Custom.jpg\" alt=\"Startup\" class=\"wp-image-28228\"\/><figcaption class=\"wp-element-caption\">credit: Ideogram<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/07\/26\/startup-issues-people-care\/\" target=\"_blank\" rel=\"noreferrer noopener\">Startup issues that most people care about<\/a>&#8220;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/04\/07\/%EF%BC%82the-innovators\/\">\uff02The Innovators&#8221;<\/a><\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/06\/08\/secrets-of-sand-hill-road\/\">a16z&#8217;s &#8220;Secrets of sand hill road&#8221; to investors and entrepreneurs<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/29\/y-combinator\/\">How is Y Combinator different from other venture capital firms?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/11\/11\/blitzscaling\/\">&#8220;Blitzscaling&#8221; expansion speed decide if startup success eventually<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/15\/why-a-company-go-public\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why a company go public?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/06\/company-governance\/\" target=\"_blank\" rel=\"noreferrer noopener\">Insights on company governance<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/31\/employee-stock-options\/\">Pros and cons of employee stock options as compensation<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/23\/lifespan-of-companies\/\" target=\"_blank\" rel=\"noreferrer noopener\">Average lifespan&nbsp;of&nbsp;companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/29\/don-valentine-sequoia\/\" target=\"_blank\" rel=\"noreferrer noopener\">Don Valentine, founder of Sequoia Capital, father of Silicon Valley Venture Capital<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/24\/angel\/\" target=\"_blank\" rel=\"noreferrer noopener\">Angel is an excellent venture capital  book for ordinary people<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/08\/essays-by-marc-anderson\/\" target=\"_blank\" rel=\"noreferrer noopener\">Two famous essays by Marc Anderson on software and artificial intelligence<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/06\/zero-to-one\/\">Zero to One<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/16\/venture-capital-unicorns\/\" target=\"_blank\" rel=\"noreferrer noopener\">Venture capital and unicorns introduction<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/02\/17\/venture-capital-and-unicorn\/\" target=\"_blank\" rel=\"noreferrer noopener\">Global Venture Capital and Unicorn Report<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/06\/24\/traitorous-eight\/\">Traitorous Eight, the origin of the semiconductor and venture capital industries<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/\">The Power Law<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/10\/16\/venture-capital-unicorns\/\" target=\"_blank\" rel=\"noreferrer noopener\">Venture capital and unicorns introduction<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/02\/17\/venture-capital-and-unicorn\/\" target=\"_blank\" rel=\"noreferrer noopener\">Global Venture Capital and Unicorn Report<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/09\/the-power-law\/\" target=\"_blank\" rel=\"noreferrer noopener\">The Power Law<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>With the development of the capital market in recent years, companies do not necessarily need to be listed, and there are many factors that can hinder startup companies from going public.<\/p>\n","protected":false},"author":1,"featured_media":28228,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83,91,420,85],"tags":[],"class_list":["post-28227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup","category-entrepreneur","category-founders","category-venture-capital"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=28227"}],"version-history":[{"count":22,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28227\/revisions"}],"predecessor-version":[{"id":41647,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/28227\/revisions\/41647"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/28228"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=28227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=28227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=28227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}