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Ask HN: How much equity to give early folks

2 pointsby jtoemanover 10 years ago
Here&#x27;s the scenario: a company&#x27;s been around and idle for a while, yet growing organically with no product development&#x2F;new features&#x2F;marketing&#x2F;etc. Now its at the point where the founders are ready to put a team in place, build out the features&#x2F;etc. Characteristics:<p>* 100&#x27;s of thousands of users; many of which are active * High sticky factor * Past &quot;MVP&quot; &#x2F; product-market-fit status * Huge potential market opp (let&#x27;s call it a Dropbox-sized opportunity, though in a different feature&#x2F;product category)<p>The founders still own the entire company. How much should they expect to give up for first engineer, first designer, etc in the context that they will likely skip a Seed round, and possibly never fundraise at all. In other words: strong potential of little-to-no dilution.<p>Any thoughts would be great!

1 comment

sharemywinover 10 years ago
Here&#x27;s the problem stock is worthless unless you go public or sell the company. It&#x27;s also double hard to value stock that this point because you have no investors to kind of back up your vision. I would just offer them a fair salary w&#x2F;good benefits. If the candidate your like says no them negotiate with them, they might bite with stock you never know. I would make is vest over 5 years though.
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