Make Connections

Network, Get Answers, Find Members in Your Area, and More!

Forums » Startup Funding

Team Equity: Hot or Not for Early Investors?

    • 1 posts
    January 29, 2014 1:13 PM EST

    With our software start-up we currently have a decision to make: share equity with certain members of our team or not?

     

    We hope this community could provide us with some points of view!?

     

    Sharing ( a limited amount of ) equity with teammembers, in our opinion, is good for two things

    1. Lowering start-up development costs (pay less, give equity)
    2. Envoking long-term commitment and an overall sense of ownership of the teammember

    However, recently we asked ourselves the question: How do angel investors or VC's look at this?

     

    Will they embrace the fact that they can now invest into a larger team?

    or..

    Will they be repelled by having a larger amount of different people holding equity?

     

    We welcome all point of views, personal experiences and tips to deal with this issue!

     

    Kind regards,

     

    Arne


    This post was edited by ArneBassez at January 29, 2014 1:13 PM EST