I really enjoyed this post and look forward to the rest in the series! I was wondering if you have a POV on how much equity to give to non-founder executives after a seed round of funding. I’ve seen reference to 1 - 3%. Is that reasonable?
Check out option impact for comps on compensation. You can see what other similarly sized startups give out in terms of equity.
1-3% sounds within range, but that's also a broad range. Another option is to give them a base level of equity and then significant performance grants if they perform well to align incentives.
You can also add your own independent board member early to have more leverage on the board.
+1
I really enjoyed this post and look forward to the rest in the series! I was wondering if you have a POV on how much equity to give to non-founder executives after a seed round of funding. I’ve seen reference to 1 - 3%. Is that reasonable?
Check out option impact for comps on compensation. You can see what other similarly sized startups give out in terms of equity.
1-3% sounds within range, but that's also a broad range. Another option is to give them a base level of equity and then significant performance grants if they perform well to align incentives.
This is a great read. I always appreciate Back to Basics good read like this. I'm looking forward to the three-part series.