article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. I'll get to service providers in a later post. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept.

Equity 391
article thumbnail

The Smartest Entrepreneurs Bootstrap Their Startup

Startup Professionals Musings

Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Of course, every company needs these, in due time. You need a prototype.

Startup 100
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Don’t Look For Investors for All the Wrong Reasons

Startup Professionals Musings

Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Of course, every company needs these, in due time. You need a prototype.

article thumbnail

Most Entrepreneurs Should Never Bring On Investors

Startup Professionals Musings

Yet, according to many sources , over 90 percent of all businesses are started and grown with no equity financing, and many others would have been better off without it. In fact, most of the rich entrepreneurs you know actively turned away early equity proposals. Of course, every company needs these, in due time. You need a prototype.

article thumbnail

Startup Runway Length Depends on Your Burn Rate

Startup Professionals Musings

The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. Do it yourself and barter for services. Your startup will require more money than you expect, and the cost of going back to the well is very high. Great strategy.

Startup 92
article thumbnail

High Burn Rates Result in Short Startup Runways

Startup Professionals Musings

The cost of giving up more equity early is often more than offset by the increased flexibility to recover from mistakes. Pay people with equity or future revenue. Do it yourself and barter for services. Your startup will require more money than you expect, and the cost of going back to the well is very high. Great strategy.

Startup 92
article thumbnail

Adding Slides Does Not Enhance Your Investor Pitch

Startup Professionals Musings

Make sure to communicate the relevance of your product / services to market needs. What equity is the company willing to give in return for the investment? Hand out copies of the slides before the presentation for note taking, with proper cover sheet, with brochures, product samples, or other marketing material you may have.

Slides 99