What is Startup Equity?
The term startup equity refers to the ownership of a startup, usually demonstrated as a percentage of ownership (or shares) given to individuals that contribute to the growth of a business. These could be your co-founders, investors, employees, and even experienced advisors.
14
202 reads
CURATED FROM
IDEAS CURATED BY
Because we don't think about how to distribute equity in a startup until is late and when it is complicated to change things.
“
The idea is part of this collection:
Learn more about moneyandinvestments with this collection
How to create customer-centric strategies
The importance of empathy in customer success
The impact of customer success on business growth
Related collections
Similar ideas to What is Startup Equity?
Equity Market
An equity market is a market in which shares of companies are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital areas of a market economy. It gives companies access to capital to grow their business, and investors ...
The general principles of equity awards
Giving equity to employees means making them shareholders, aka owners of the business. Some things to consider:
- Cover the downside: schematically, equity should cover at least the opportunity cost taken by founders and employees when they accept a discount on the salar...
Factors to consider when splitting startup equity (3)
Future plans. Founders should also think about long-term goals and how equity splits may impact those plans. For example, if one founder plans to take on a full-time role with the company while the other intends to remain a passive investor, this may affect equity split.
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates