Im about to employ a developer,with salary sacrifice(4 year vesting,1 year cliff). what factors should I consider in helping decide the equity amount?

We are currently negotiating this. The business is making around $2000 profit a week. He is saying 10%, I'm more thinking around 5%. How do I know what would be fair? How is it calculated?


As an employee, I would argue that I'm investing the difference (what you call sacrifice), and look for equity to match it up.

Answered 10 years ago

Check out

Pick location, market & role. There you can see equity given + salary.

There's a caveat though, if this is you first developer and he/she is going to be essential to your growth maybe you should consider him/her as a cofounder. Any tech business needs a tech cofounder in my opinion.

In that case, a much higher percentage than what you would see for employees should be given out.

Answered 10 years ago

What is market telling about ? Search around and you will find.

Answered 5 years ago

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