Keeping your slice of the pie - The Startup Founder's Guide to Equity - Part I
Yin Wufemstreet.substack.comSaved by Danielle Vermeer
Keeping your slice of the pie - The Startup Founder's Guide to Equity - Part I
Saved by Danielle Vermeer
Yet equity is a word with two interlinked meanings: the right to share in a stream of profits, and the right to participate in decisions that affect your outcomes.
You want to own equity. If you don’t own equity in a business, your odds of making money are very slim.
You want to own equity. If you don’t own equity in a business, your odds of making money are very slim.
here: sharing equity is the best motivator. Founders already have their shares; VCs have our preferred shares. Another pool, the option pool, is set aside for key future hires, often representing 10-20% of the total shares after the investment.