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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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8 Questions You Should Ask Before You Join A Startup

Startup Professionals Musings

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary.

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8 Red Flags To Evaluate Before Pledging To A Startup

Startup Professionals Musings

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary.

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Equity-Only CTO and Equity-Only Developers

SoCal CTO

Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). And let’s be honest, most employees, advisors, etc. who start with small equity percentages don’t end up making very much from startups. Did they have a Weak Development Team ? He had a partially built product.

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Validate The Pedigree Of A Startup Before You Jump

Startup Professionals Musings

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary.

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8 Questions Before You Join Or Invest In A Startup

Startup Professionals Musings

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. One more key employee or one more investor will probably not turn the situation around. Calculate employee stock option values and vesting times, as well as salary. Marty Zwilling.

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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

You don’t really need to worry about how much common stock will be set aside for an employee option pool or how much preferred stock might be issued from raising future VC rounds in order to determine an equitable founder stock division. Capital Investment & Sweat Equity. Ideation/IP.

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