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Kamal Hassan Founder at Incmind, Director at Founder Institute

Toronto, Canada Area

I've been an entrepreneur for 15 years, and an angel investor for ten years. I've raised >$10M in funds from over 50 investors. To see what I know check out my answers on Quora at https://www.quora.com/profile/Kamal-Hassan-1

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Kamal Hassan

Toronto, Canada Area

I've been an entrepreneur for 15 years, and an angel investor for ten years. I've raised >$10M in funds from over 50 investors. To see what I know check out my answers on Quora at https://www.quora.com/profile/Kamal-Hassan-1

$3.33/min

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Ran a multimedia travel publishing business across Europe from 1998-2001. Raised VC funding, hired and managed travel writers and advertising sales team.

http://www.inyourpocket.com

Angel Investing

I've been an angel investor for a decade. I've also helped launch an angel group for INSEAD, my business school.

http://blog.venturelynx.com/2013/08/10/a-tip-for-angel-investors/

I've raised over $10M in aggregate from 50 different investors: VC, family office and angels.

http://blog.venturelynx.com/2013/07/29/fundraising-secrets-for-entrepreneurs/

Transport (Parking, Tolling, Insurance, Auto Rent)

From 2005-2011 I ran Skymeter, a GPS-based payment system for trucks and cars: for pay-as-you-drive insurance, parking payment, tolling, car rental and more.

http://web.archive.org/web/20110427220318/http://www.skymetercorp.com/

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Reviews 15

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Kamal Hassan answered

If a startup is bootstrapping, and it's already profitable after one year, how much stock should a founder offer a key hire?

A typical rule of thumb would be that an established company sets aside around 15% of the outstanding shares at any point in time for employee options. Those get split up among employees based on their contributions.

Depending how key these VPs are relative to other employees you have (remember to give them something also) or expect to hire, you might give them 2-5% each.

This assumes that you are an established company. If one of the VPs is going to quintuple the size of the business, they might push for being more of a 'partner'.

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Kamal Hassan answered

How do you calculate the value of stock for a start up consulting company for the purpose of stock options?

There are three questions here:
- the strike price of the options
- the market value of the company
- how much those options are actually worth to the recipient

1. The strike price is the price people pay to exchange their options for shares. You can set any strike price you like: it's just a negotiable contract term. However, if the strike price is less than the market value of the shares, the options are taxable (which people tend to avoid), so you typically set the strike price at or above the market value.

2. The market value of the company is how much the company is worth. The celebrity of the founder is clearly a big part of it. If the company were sold, the acquirer would want the founder to lock in as part of the acquisition. So figure out the value a couple of ways:
(1) off standard profitability metrics: X times yearly profit and/or revenue vs. comparable companies
(2) off the acquisition price: with and without the founder and add the percentage chance the founder would go with it
(3) off recent transactions in the stock (what people pay for the stock is a great indicator of value)
These will give three different answers: pick some sort of average number, so you can justify your strike price.

3. What the options are worth to the recipient: remember they are only worth something if the recipient can exercise them for stock, and then sell the stock (or receive dividends) for more than the option's strike price. So figure out the probability of the company being sold above the strike price in the next X years, and what an weighted average expected sale price is for the company in the next few years (noting the founder's importance), and that's what the options are worth.

I hope that helps.

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Reviews

Thanks!

Aden Rusfeldt Source: Clarity

Kamal is a first-class CEO with a clear vision of where Skymeter Corporation is going and how to take it to the next level. He is honest and sacrificially hard-working and very calm in a crisis. His analytical skills are excellent and he is good at putting a diverse team together and working effectively with all its members. He takes a consultative approach to tough business challenges. A highly commendable CEO.

Donald Johnston Source: LinkedIn

I have known Kamal Hassan for 5 years. Early in our relationship he was an advisor to a company that was a predecessor to Skymeter Corp, and he subsequently became the CEO of Skymeter. I have worked closely with Kamal throughout this time. Kamal is singularly optimistic and hardworking. He understands things quickly and executes an astonishing amount of work. Lots of people work 70 hour weeks, as Kamal does, but few, like him, never flag. Throughout the time I have know him he has shown a rare degree of tenacity and integrity. I have never seen him angry or discouraged. I don't recall him ever blaming another for a problem. He listens to his entire team then executes what he thinks best without apology. He undoes errors as quickly as he understands one was made and always speaks straight and respectfully to the issues.

Bern Grush Source: LinkedIn

Kamal's work was key to solving the complex math equations required for distortion free 3D image projections on a dome surface. His contribution allowed IMAX to premier their a highly successful advanced 3D system at the worlds fair in Osaka Japan.

Kevin Kowalchuk Source: LinkedIn

Kamal was an excellent CEO for In Your Pocket. Not only did he secure $5million in financing for the company, he also presided over the expansion of the In Your Pocket brand across Europe. Under his stewardship the company opened several offices in Scandinavia and Western Europe.

Martins Zaprauskis Source: LinkedIn

Kamal and I went to b-school together. He invited me to work on the Board at IYP where he was CEO. I was very taken with his strong grasp of strategy, as well as his determination, hard work and openness to new ideas. Above all he was able to be thoughtful and measured even when the chips were down - a rare commodity.

private private Source: LinkedIn

Kamal helped pilot a new technology company at the start up phase for us, and did so very successfully. If you want 100% integrity, deep intellect, and unyielding determination, he is your man.

Loudon Owen Source: LinkedIn

I invited Kamal to be a guest presenter and mentor at a 2-day startup bootcamp for promising entrepreneurs in the Caribbean. This event was facilitated by the infoDev Group at the World Bank. In addition to delivering great presentations on investment-readiness, and providing valuable feedback and insight to over 17 entrepreneurs, Kamal was a pleasure to work with! The participants truly enjoyed learning from him! I look forward to working with him again in the future to support entrepreneurs in emerging markets.

private private Source: LinkedIn

This guy senses what the future wants to see and sees how that might come to be. He's sensitive, articulate, patient, dedicated, honest and loyal, and bright. He is keen to succeed in anything he touches.

Bart Mindszenthy Source: LinkedIn

Kamal is a top-notch executive heading a 21st century technology company. He graduated at the top of his class at INSEAD.

Niraj Dawar Source: LinkedIn

For many years, Kamal served on the Board of Directors of The Empire Club of Canada with me. He was an outstanding member of the board. He made value-add comments and suggestions at Board meetings. Kamal is always postive and helpful. He is creative and looking for win-win solutions.He worked hard on behalf of The Empire Club of Canada and made significnat value add contribtions. When Kamal promised something, you could count on him delivering.

John Koopman Source: LinkedIn

Member since August 2013