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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 are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. Same Value for Sweat Equity as Investment Dollars?

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Should You Share Equity with Consultants?

www.inc.com

Research & Development. Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. Parker found that equity as compensation helped build loyalty to his company -- even among consultants. Technology.

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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

Unfortunately, what the CEO/founder forgets most often is that the notes have a multiplier effect in the post-money calculation; the more notes and the further the cap is from the new priced equity, the greater the variance between actual and nominal pre- and post-money valuations. It’s going to be great!”.

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Beware of Premature Merge Elation

Both Sides of the Table

I can save tons of development time and I think I can buy it for all equity. If they raise a bunch of capital little ole you isn’t going to be around to have your option pool topped up. I’m not saying there are never reasons to buy another company for cash and/or equity. Me: “Zero dilution.

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Doing Deals – 3 Tips for Entrepreneurs (Part 2)

Scott Edward Walker

As I saw first-hand in New York City representing big, successful private equity firms, the best dealmakers have an extraordinary ability to take their emotions out of transactions and remain extremely disciplined. Tips Tip #1 – Check Your Emotions and Remain Disciplined.

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Changing Equity Structures for Early Startup Employees

www.instigatorblog.com

Changing Equity Structures for Early Startup Employees Tweet Recently someone asked me for advice on how much equity they should give to their early employees. 1% but they’re not going to be overwhelmed by it, or insanely incentivized by that equity alone. I do believe that early employees should trade salary for equity.

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2021 Predictions

Eric Friedman

The idea of Twitter reincarnating the “verified” program under the launch of a creator economy support system would re-invigorate developers, be an easy way to start to KYC people and integrate with payment gateways (hello Square – they know people over there. 7/ SaaS roll-ups and micro-private equity become huge.

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