Equity can be a powerful tool to for a start-up company. It can be used to compensate employees, hire consultants, form partnerships and acquire things the company needs to get going while allowing you to preserve cash and limit risk. However, how you divide up equity can make a big difference in your company's long term success. Early mistakes can cause major problems down the road. This webinar will cover an equity-allocation concept, called a Grunt Fund, that allocates equity based on the relative value provided by different people. Participants will learn:
The most common mistakes people make when rewarding equity
How to calculate a fair value of everything
When to engage lawyers and accountants (hint: it's not in the beginning)
What to do when you have to let someone go
