article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

Same Value for Sweat Equity as Investment Dollars? Jason Cohen in How to think about cash vs. equity compensation (definitely read the comments) provides similar kinds of formulas. The key in his approach is that equity compensation should be viewed the same way that you view investment.

article thumbnail

Equity-Only CTO and Equity-Only Developers

SoCal CTO

Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). Unless you are a co-founder of the startup, a developer is probably not going to do all that well working on sweat equity alone. How To Find A Programmer To Build Your Startup Idea Another option is sweat equity.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

8 Questions You Should Ask Before You Join A Startup

Startup Professionals Musings

Most founders like to talk about their many months or years of sweat-equity , but cash invested is a stronger commitment. The allocation of shares among the founders, and the number and size of outside investments, will tells volumes about the health, stability, and management of the business.

article thumbnail

What is Sweat Equity Worth?

www.entrepreneur.com

What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Entrepreneurs often ask me how to value the sweat equity invested in their startup. Market value doesn't equal the sum of sweat equity invested by you and your partners.

article thumbnail

Finding a Technical Cofounder for Your Startup

SoCal CTO

Here are a few perspectives on the topic of finding technical cofounders: In Building a sweat equity team , Joel on Software tells us: You simply need to network. Go to user groups. Go to tech (or other relevant industry) events. Refine your elevator pitch.

article thumbnail

10 Entrepreneur Milestones That Make Funding Easy

Startup Professionals Musings

Investors like to see that you have committed personal funds as well as “sweat equity,” and they like to see real progress at this level. If you have neither, you better have a prospect pipeline, connections to distributors, or partner relationship with a known company to bolster your credibility. Show personal investment.

article thumbnail

Building a sweat equity team

discuss.joelonsoftware.com

where I can learn about how to build a sweat equity team? Rather, it is a proposal for sweat-equity investors. Andrew Badera Thursday, October 09, 2008 Deleting … Approving … I quite agree, Andrew, that the equity partners need to have a hand in guiding the enterprise. The key here is motivation.