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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? n = (1.2 - 1)/1.2 =.167.

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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

As Finance Fridays continues, we are introducing the concept of the Cap Table. This week they set out to create their cap table and hire a CTO. The founders each have common shares that will vest over four years. Equity is split 55% and 45%, but where is that officially recorded? Time to update the cap table.

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Should You Offer Equity Compensation to Employees?

Up and Running

Of course, not every equity compensation story is a David Choe Story. If you’re thinking about extending equity to an employee or a vendor (as in the example above), you should know that the topic is multi-faceted. In this article, I’m going to examine: What equity compensation is. Different types of equity compensation.

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A VC: Employee Equity: How Much?

www.avc.com

Employee Equity: How Much? The most common comment in this long and complicated MBA Mondays series on Employee Equity is the question of how much equity should you grant when you make a hire. For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula.

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Is Dead Equity Crippling Your Company?

Altgate

. —————– Dead equityequity held by employees and founders no longer working at the company — is a large and growing problem. One who attracted much attention is David Choe, the graffiti artist hired to paint the company’s first headquarters. million.

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Should You Share Equity with Consultants?

www.inc.com

Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Should You Share Equity with Consultants? Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We

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Is Dead Equity Crippling Your Company?

Altgate

. —————– Dead equityequity held by employees and founders no longer working at the company — is a large and growing problem. One who attracted much attention is David Choe, the graffiti artist hired to paint the company’s first headquarters. million.

Equity 28