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Should You Share Equity with Consultants?

www.inc.com

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. But sharing equity can have pitfalls, too.

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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. My recommendation to our lead partner looking at the deal, “Pass. If they raise a bunch of capital little ole you isn’t going to be around to have your option pool topped up. Me: “Zero dilution. million uniques.

Merger 276
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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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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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Entrepreneurs: Your instincts are always better than bad advice

The Next Web

Neil Rimer is a Partner and co-founder of Index Ventures. In many cases we have observed, the founders have given away too much equity to their first investors — typically angels and family offices, who have little experience with fast-growing startups or the venture capital funding model.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. Led by Oak Investment Partners with participation by General Catalyst, Sequoia, & Accel and others. Series D Preferred.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . But in business, you want a lot of partners. In the private equity universe, most Partners have primary training as deal-makers, not as managers. This is harder than it sounds.