Would You Rather Take 10% Equity or a Cash Bonus of $100,000 in a Startup’s First Year?

If a company can afford to give you a cash bonus of $100,000 during the first year, they must be doing absolutely everything right.  It would be in your best interest to take the equity, even if there is risk involved.  Why would I come up with this resolution? Let’s look at five years into … Read more

I Don’t Have the Money to Incorporate. How Can I Attract Cofounders and Structure Their Stock Options for When We Incorporate?

How to attract cofounders:  Share your vision with others.  See who buys into it.  Start with friends and family then expand to other networks. If you are scared of having your idea stolen:  Leonard Kim’s answer to What’s the best way to discuss an idea for a startup in public without it being stolen? How … Read more

How to Compensate a Contractor with Equity at an Early Stage Startup

Someone on Quora asked: What is the best way to compensate a contractor with equity at an early stage-startup? Let’s say I’ve got 1M shares assigned to founders, representing 100% of the stock set forth in the articles of incorporation. Bootstrapped, without any non-founder investment, and without any outside professional help toward a valuation (i.e. … Read more