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Equity for Early Employees in Early Stage Startups

SoCal CTO

Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." The first few people into a startup are on a spectrum of founder vs. early employee. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept.

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Startup Fairy Tales and Other Tall Tales That Venture Capitalists Tell

Growthink Blog

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1. But here is the key – contrary to popular wisdom it is negatively correlated.

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Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

Some commentators have suggested this is the wave of the future, signifying a shift in the balance of power from investors to founders of the relatively small, elite group of growth companies that make it to public markets. Nevertheless, these preferences aren’t intended to last forever.

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