Distribution Equity Salary Vesting 
Startup Professionals Musings
MAY 1, 2023
So, the first question I usually get is what percent of the company or equity is that person worth? Giving a cofounder a salary won’t get you the “fire in the belly” you want. Just because it was your idea doesn’t mean you “deserve” 90% of the equity. Amount of venture funding provided.
VC Adventure
AUGUST 16, 2020
Others feel less strongly about it and either don’t distribute options below a certain level of employee (say manager level) or have programs where employees need to be at a business for a period of time before they earn the right to have an option grant. But better to have a view on this that is deliberate.
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Feld Thoughts
SEPTEMBER 2, 2011
The founders each have common shares that will vest over four years. The vesting schedule protects each of the co-founders in case one gets hit by a bus or decides to drop the project after a short period of time. Equity is split 55% and 45%, but where is that officially recorded? Time to update the cap table.
www.instigatorblog.com
OCTOBER 23, 2010
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.
YoungUpstarts
JANUARY 9, 2014
Whenever you distribute a new product into the marketplace you expose yourself to potential lawsuits. This insurance protects profits, taxes and salaries that need to be accounted for whilst you are unable to remain actively involved in your business. Vest your Equity over time. Product liability insurance coverage.
David Teten
SEPTEMBER 2, 2017
It’s hard enough to get a job at a venture capital or private equity firm; it’s even more complex to join as a Partner. Also see Preqin’s Key Due Diligence Considerations for Private Equity Investors. . VC and private equity are very illiquid on both the investing and the personnel side. – Share and vesting of Carry.
thinkspace.com
SEPTEMBER 7, 2012
How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? Equity for Founders. Equity for Employees.
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