Keeping your slice of the pie - The Startup Founder's Guide to Equity - Part I
Yin Wufemstreet.substack.com
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Keeping your slice of the pie - The Startup Founder's Guide to Equity - Part I
Equity tokens are fungible tokens that represent ownership in an asset or a pool of assets. These tokens are used to incentivize participants to provide a scarce resource to a network. In cryptonetworks, scarce resources include capital, developers, customers, creators, and computing power.
future.a16z.com • Designing Internet-Native Economies: A Guide to Crypto Tokens - Future
The value of equity can be illustrated by the artist David Cho, who opted to take payment in stock options for painting a mural on an office wall for Facebook. When Facebook went public, his shares were worth a staggering $200 million.13 So don’t underestimate the value of your equity. Just because your stock isn’t worth much today, you should spen
... See moreJudy Robinett • Crack the Funding Code: How Investors Think and What They Need to Hear to Fund Your Startup
Why is owning equity in a business important to becoming rich?
Tim Ferriss • The Almanack of Naval Ravikant: A Guide to Wealth and Happiness
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.
Patrick Vernon • Venture Capital Strategy: How to Think Like a Venture Capitalist
A typical startup allocates ownership among founders, employees, and investors. The managers and employees who operate the company enjoy possession. And a board of directors, usually comprising founders and investors, exercises control.