startup equity

Ownership in ventures

Startup equity is ownership stake in a newly formed company, typically offered to early employees, founders, and investors in place of or alongside cash compensation.

Because startups often can't afford market-rate salaries, equity serves as a bet on future value: She took a pay cut but negotiated for more startup equity.

The equity usually comes as stock options or restricted shares that vest over time, becoming valuable only if the company succeeds and goes public or gets acquired.

Related

ownership · stake · cliff · golden handcuffs · Series A · valuation · angel · venture capital · exit · IPO · liquidation · preferred · common stock · grant · exercise · term sheet · pitch · unicorn

Categories
Opposites
compensation form

startup equitysalary

Fixed periodic employment payment

base pay · fixed income · hourly pay · cash bonus · signing bonus

ownership type

startup equityblue-chip stock

Proven company's shares

corporate bonds · government bonds · index funds · money market funds

financial security

startup equityguaranteed income

Payment promised without condition

savings account · cash reserves · liquid assets

Family

startup, equity, start, equities, equitable, equitably, inequitable, inequity, starting

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Timeless · Abstract · Rated G