January 17, 2022

Allocating equity, unicorn traffic jam, blockchain gaming survey – TechCrunch

Early-stage startup founders have just a few ways to recruit and retain employees:

  • Offer a competitive salary
  • Create a role that harnesses their interests/talent
  • Give them a stake in the company.

In most cases, equity will not leave employees with substantial wealth. But even the most embittered worker will think twice about walking away from a job before they’re fully vested.

In a TC+ guest post, Kirsten Prost, vice president at VC/PE firm Tercera, lays out detailed steps for designing your equity program.

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Her guide includes brackets and multipliers for contributors at different levels, along with fictional examples founders can use for modeling, and tips that will help employees understand the value of their stake.

Speaking as a veteran of many early-stage startups: entrepreneurs love to be seen talking about fostering an ownership…

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