Keeping your slice of the pie - The Startup Founder's Guide to Equity - Part I

Ownership can be understood as a proxy for two things: decision making power and financial power. This suite of benefits includes the ability to have a voice in the direction, strategy, operations, or fate of a company; as well as the ability to capture profits and the value of its equity and assets.

If you’re forming a startup, there are generally two kinds of stories to choose from about what the startup is for. Keep in mind that startups are companies that are trying to take over some subsection of the world. It’s ambitious stuff, so they tend to take on lots of early investment. They get somebody to give them a lot of money so they can hit ... See more

equity = the ability to 'buy-in' as part of their fandom, to earn as part of their advocacy, and have the potential of shared upside and monetary payback in the future.

Today, it is hard not to notice the prevalence of equity culture. Every employee optimizes their stocks and options. People frequently move between companies to build a portfolio of equities. Employees of successful startups want to become angel investors. Second-year MBAs want to be founders or VCs. Nobody wants to miss out on the next equity succ... See more

A new business model for building a city: Instead of owning specific pieces of land, you own equity in the entire city. This way, you have equity alignment with everyone else in the city.

Ownership is inaccessible to most people. It’s either bought (through stocks/investments), created (starting something of your own), inherited (born lucky), or earned (employment-based equity). None of which are easy to attain. Few families have extra income to invest. Starting a business is harder than ever (entrepreneurship rates in the US are ha... See more