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    Co-founders and early employees typically receive equity ownership in a startup in exchange for low salaries, with the largest equity stakes going to those who contributed most to the company's value proposition and earliest stages of development. Founders who provide more seed capital than others may receive a larger share of equity to recognize their greater financial contribution to launching the business.

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    Ni File

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    Co-founders and early employees typically receive equity ownership in a startup in exchange for low salaries, with the largest equity stakes going to those who contributed most to the company's value proposition and earliest stages of development. Founders who provide more seed capital than others may receive a larger share of equity to recognize their greater financial contribution to launching the business.

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    Creating long term team

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    NiFile

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    Co-founders and early employees typically receive equity ownership in a startup in exchange for low salaries, with the largest equity stakes going to those who contributed most to the company's value proposition and earliest stages of development. Founders who provide more seed capital than others may receive a larger share of equity to recognize their greater financial contribution to launching the business.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    49 views2 pages

    Ni File

    Uploaded by

    jimbaqi
    Co-founders and early employees typically receive equity ownership in a startup in exchange for low salaries, with the largest equity stakes going to those who contributed most to the company's value proposition and earliest stages of development. Founders who provide more seed capital than others may receive a larger share of equity to recognize their greater financial contribution to launching the business.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    Structure

    Salary Replacement – co-founders and employees will agree to work for an extremely low salary in exchange for an ownership stake in the
    company that they believe will appreciate greatly in value in the future
    Ideation - the extent to which each co-founder contributed to the company in its early stages should inform how the equity is split. Whoever
    proposed the chief value proposition of the company typically receives the greatest percentage of equity ownership.
    Startup Stage – Co-founders and employees alike who join a company in its earliest stages of development, such as before the seed round or series
    A funding, often receive larger piece of equity to recognize the time they invested and the risk they assumed in working for such a young company.
    Seed Capital – If one founder provided more seed capital into the business than the other, he or she will often be rewarded for that through equity.
    For example, if the co-founders’ contributions to the company are otherwise equal, a 60/40 equity split might be established.

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