Equity for Early Employees in Early Stage Startups
SoCal CTO
SEPTEMBER 27, 2011
Suppose further that he's going to cost $60k a year in salary and overhead, x 1.5 = $90k total. If the company's valuation is $2 million, $90k is 4.5%. Of course, to be able to use this kind of formula, you will need to be able to determine how much impact the person will have and figure out a valuation. and we have 11.1%
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