To give or not to give employee equity, that is the question. One of the first issues startups deal with is how they plan on compensating key personnel. For startups with limited funds, there may not be many options. Equity refers to an ownership (voting) interest in a corporation, which comes in the form of a stock certificate. During various stages in a startup’s lifecycle, the startup will issue equity to founders, employees, investors, and others. Offering equity in a company is typically contingent upon several variables, such as the role an individual would play, and the time in which they joined.

startup employees celebrating equity value

Should I Give A Startup Employee Equity?

To give or not to give employee equity, that is the question. One of the first issues startups deal with is how they plan on compensating key personnel. For startups with limited funds, there may not be many options. The want or need to issue equity really depends on your startup’s short and long term goals, as well as its financial capabilities.