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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." Same Value for Sweat Equity as Investment Dollars?

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What is Sweat Equity Worth?

www.entrepreneur.com

What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Entrepreneurs often ask me how to value the sweat equity invested in their startup. Market value doesn't equal the sum of sweat equity invested by you and your partners.

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8 Questions You Should Ask Before You Join A Startup

Startup Professionals Musings

Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. Think twice before you jump in.

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8 Red Flags To Evaluate Before Pledging To A Startup

Startup Professionals Musings

Early stage burn rates over $50K per month, or a runway of less than six months may indicate an inefficient or desperate startup. Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. Think twice before you jump in.

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How to Hire for Sweat Equity…

www.drowningamerican.com

Next → How to Hire for Sweat Equity…. Here is the original post: Early Stage Web Application Start-Up Seeking Developer/Designer. That being said the following is available to the right candidate: • 3-5% equity in the company (based on experience). • $50,000/year salary once we obtain funding (target: January, 2010).

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How we Hire for Sweat Equity (Part 2)…

www.drowningamerican.com

Next → How we Hire for Sweat Equity (Part 2)… Posted on April 7, 2011 by Travis Biziorek. Early Stage Web Start-Up Seeking Developers. A lot of the initial, early risk has been mitigated through our work over the last year. equity in the company. Musings on Life and the American Dream.

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8 Tactics To Highlight Your Startup For Early Funding

Startup Professionals Musings

The average amount per startup has been $23,000, usually in the form of a convertible loan, rather than an equity investment. The vehicle of choice is most often a convertible note, which is really a loan with a specified duration and interest, with an option to convert it to equity when professional investors come in later.