Equity represents the amount of money that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company’s debt was paid off. Equity is sometimes used to refer to shareholder equity which is an ownership interest in a company.

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.