Name: Ngo Thi Phuong Linh

ID: DS170064
Class: SE17B01
SUMMARY WEEK 9
a) Legal and Accounting Basics for Startups

- Formation as a separate legal entity, such as a Delaware corporation, provides protection against
personal liability. This is important for founders to understand and prioritize.

- Equity allocation should consider the value of execution rather than just the idea. Equal ownership
among founders is generally preferred to maintain alignment and trust within the team.

- Vesting is crucial to incentivize founders and employees to commit to the long-term success of the
company. It aligns interests and helps avoid potential conflicts in the future.

- Raising money through convertible notes or safes can provide flexibility, but founders should be aware
of future dilution and negotiate terms carefully to protect their ownership.

b) Managing Startup Finances

- Startups often make the mistake of not knowing the important financial numbers to track, such as
bank balance, revenue, and expenses. Understanding burn rate and runway is crucial for financial
health.

- Founders should be actively involved in financial management and not solely rely on bookkeepers.
They should review reports, question discrepancies, and understand the financial health of the
company.

- Hiring too quickly without considering return on investment can lead to financial strain. It is important
to measure the ratio of revenue to employees and focus on doing more with fewer resources.

- Scaling before achieving product-market fit can be detrimental. Startups should focus on conserving
cash and finding product-market fit before expanding their team and expenses.

c) Building an Engineering Team

- Personal networks are a valuable resource for hiring engineers, as they ensure compatibility and trust.
Founders should take the time to exhaustively search within their networks and make personalized asks.

- LinkedIn and GitHub are excellent platforms for finding and messaging potential candidates. However,
personalized and targeted messages are crucial to stand out and show genuine interest in the candidate.

- Hiring a technical recruiter can be beneficial when the hiring cadence increases and sourcing becomes
time-consuming. Starting with a contract recruiter focused on sourcing can help alleviate the workload.

- Structured interviews are more effective in reducing noise and ensuring consistency. Providing
interviewers with defined criteria to evaluate and holding the process constant for all candidates
improves accuracy.

d) How to Lead

- The first key insight is that there is no single archetype for a great leader. Great leaders come in
various forms, and everyone has the potential to become a great leader. Authenticity is crucial, and
leaders should be true to themselves.
- The second key insight is that great leaders possess clear communication skills. They can paint a clear
and compelling vision for others to follow, and as the organization grows, effective communication
becomes increasingly important. Simple and well-prepared communication is key.

- The third key insight is that great leaders have good judgment about people. Choosing the right
individuals to empower as leaders within the company has a significant impact on its future. Leaders
should take the time to meet and learn from others, honing their judgment and instincts.

- The fourth key insight is that great leaders demonstrate strong personal integrity and commitment.
They stand for something meaningful beyond themselves, avoid behaviors that diminish trust, and make
their work a life mission that inspires others.