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.
- sharesUnits of company ownership
- vestingGaining full ownership
- stock optionsContracts to purchase shares
- foundersThose who begin institutions
- dilutionReduction in concentration
ownership · stake · cliff · golden handcuffs · Series A · valuation · angel · venture capital · exit · IPO · liquidation · preferred · common stock · grant · exercise · term sheet · pitch · unicorn
- future money
- small capssmall caps, penny stocks, community banks
- startup fundingseed round, venture capital, angel investment, angel investors, seed funding
startup equitysalary
Fixed periodic employment payment
base pay · fixed income · hourly pay · cash bonus · signing bonus
startup equityblue-chip stock
Proven company's shares
corporate bonds · government bonds · index funds · money market funds
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