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Basics of Employee Equity

Jul 22, 2014 · A crash course for new startup employees in understanding how equity works.

Taylor Davidson

Managing Director / Founder

View Employee Equity 101 on Slideshare

In June 2014 I gave a talk at Venture for America at their summer training camp in Providence, RI. In the slides above (and on Slideshare), I covered the basics of understanding:

  • How venture funding works and how employee equity is created
  • How options are created and valued
  • The philosophical and tactical reasons why employee equity exists
  • Considerations around how to structure equity plans
  • Data and resources to benchmark and value equity plans

The topic of employee equity is personally important to me because it's one that is difficult for people to talk about, isn't discussed openly, and it's hard for people to learn about. I know I've made mistakes in structuring equity in the past, and I'd like to help others from doing the same.

You can view the slides at Employee Equity 101, on Slideshare.

Resources I introduced and leveraged in the talk:

Questions, contact me anytime.

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