Remove CTO Hire Remove Dilution Remove Early Stage Remove Pre-Money Valuation
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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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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

I couldn’t understand why they wanted so many options until a friend pointed out that this just lowered their “true&# pre-money valuation (they also asked for some sharp elbowed terms in the deal). You’ll need to hire and retain talen to grow your company. I turned them down. They were nonplussed.

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