This week on The Angel Next Door, Marcia talks with modern renaissance man Mark Herschberg. From MIT educator and cybersecurity professional to startup CTO (Chief Technology Officer) and author, Mark has worn many hats throughout his professional career. Despite his expansive resume, he and Marcia focus on his time spent in the world of startups, mostly as an executive, including 2 startups he is currently working on.
Mark starts by telling listeners about his journey of graduating from MIT and deciding not to go the typical wall street, classic tech, or consulting route. Instead he fell into the startup and investment world. As an operator at heart, Mark found that he enjoyed working with small/early stage companies and quickly became a career executive and CTO for those types of companies. He explains how his experience as an executive, which required him to evaluate the companies that were looking to hire him, has helped him be a more successful investor as well.
Marcia and Mark go on to discuss what would be the right amount of equity for each role in a startup. Mark tells listeners what he has seen in his experience, with companies typically setting aside 10-15% equity to be split between C-level employees. Lower level executives such as VPs or directors may receive 1-2% equity, while some companies may offer a combination of equity and money. Mark also explains different rounds of funding, such as seed rounds and series funding rounds (A, B, C), and at what stage a company may be in those rounds.
Mark then explains what a fractional C-suite executive is, a role that he has held in several startups for over a decade, specifically as a CTO or CTPO(Chief Technology/Product Officer) . As a fractional CTO, he is able to provide his expertise and guidance to a startup without breaking the bank, allowing them to hire more junior level employees at a lower cost. He expresses how he has seen some companies make the mistake of hiring junior level employees without having senior level guidance, and believes more companies will begin to rely on fractional executives.
Finally, Mark touches on 2 startups he is currently working on. He created an app, Brain Bump, which helps users retain information they learn from content such as books, podcasts, or blogs. Initially created as a counterpart to his book, The Career Toolkit, he is working on expanding the app’s reach for both consumers and content creators. He also is working on a startup in the cyber security arena, and tells Marcia about his concerns regarding today’s cyber security issues. This episode is packed with great insight from a remarkably educated expert in many fields. You don’t want to miss it!
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