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Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." I'll get to service providers in a later post.

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5 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

Level of responsibility and time allocated. Cofounders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The CTO of many technical startups was the original founder.

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5 Keys To Negotiating Your Fair Share Of Any Startup

Startup Professionals Musings

Level of responsibility and time allocated. Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The CTO of many technical startups was the original founder.

Cofounder 435
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5 Criteria For Splitting Equity In Your New Venture

Startup Professionals Musings

Level of responsibility and time allocated. Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The CTO of many technical startups was the original founder.

Equity 238
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How Much Founder Stock Should You Offer Co-Founders?

Startup Professionals Musings

Level of responsibility and time allocated. Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The CTO of many technical startups was the original founder.

Cofounder 261
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Are You Getting Your Fair Share Of Startup Equity?

Startup Professionals Musings

Level of responsibility and time allocated. Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. The CTO of many technical startups was the original founder.

Equity 120
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Further Thoughts on Startup Operations

Both Sides of the Table

I recently wrote a post about why I didn’t think early-stage startups should have COOs. One great solution I see is to hire an outstanding CFO who runs both. I usually encourage people to think about titles like, “Founder & CTO&# or “Founder & VP Marketing.&#. Dilute your cash, equity or both.