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PeopleConnect finds "Angel employees" who work for startup equity –

Reynaldo Gill and Ken Crittendon, founders of a startup called Commendo Software, were in a common catch-22. They hoped to get venture capital funding. To attract that funding, they needed a team of experienced sales and finance executives. But since they didn’t yet have funding, they had no money to hire those people.

Many startups founder at precisely that impasse. But Gill and Crittendon found an unusual solution. They contacted a small San Francisco search firm called PeopleConnect that specializes in placing executives and tech professionals who are willing to work without pay until VC funding comes through. The firm found them a vice president of sales and director of finance who agreed to work for equity. PeopleConnect http://www.peopleconnectstaffing.com/ and its CEO, Max Shapiro, have carved out a small but unique niche in the recruiting world with what they call their "Employees Without Paychecks" program.

Even more notably, Shapiro developed this program as a response to the dot-com bust _ taking what could have been a lethal business slump and instead using it to create a new business model.

"I have not heard of this in my 25 to 30 years in this industry," said Robert Zahra, chairman of the National Association of Executive Recruiters. "It sounds like they are on the cutting edge."

By ILANA DEBARE
San Francisco Chronicle

Full Story: http://www.shns.com/shns/g_index2.cfm?action=detail&pk=NOPAY-11-04-05

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