Negotiating Equity: A Best Practice Guide for Founders and Their Future Team
Posted on 12/13/2022 by Bryce Bencivengo
Distributing equity makes it possible for founders, investors, employees, and other contributors to own a piece of the company they are building. Equity plays an especially important role in the startup community, with billions of dollars being converted into company equity every year. With equity, you can generate significantly more wealth and with skin in the game, be more motivated at work too.
Negotiating equity has a direct impact on a company’s ability to grow. With a functional equity distribution plan, all parties involved will feel valued and committed to ensuring the company succeeds. No matter what the economic turbulence we’re facing today, be it the rise of inflation or an impending recession, the fundamentals of equity negotiation remain the same. And with today’s startups competing to attract and retain the best talent in a hot job market, understanding the ins and outs of equity has never been more beneficial.
In this guide, we discuss the most important things to know about the equity negotiation process for founders and the talent looking to join them.
- The fundamentals of equity- common terms and the different types of startup equity available, who gets each type of equity, and the various ways to capitalize the most on stock options
- Developing a strong negotiating framework
- Insights from industry professionals in the tech, startup, recruitment, and venture capital space
- Equity data on leadership roles based on their different series level
- Current trends in the startup equity market that are predicted to impact the future of the broader equity landscape
Download your free copy of the guide here.
At Robert Walters, we partner with market leading enterprises, high-growth startups and dynamic financial services firms to help them hire the very best executives, functional leaders and emerging talent across various sectors all across the U.S. In Austin, we have a specialized team of highly skilled recruiters who focus on partnering with venture capital-backed technology organizations in the startup phase. We have a particular focus within; Technology, Design, Finance & Business Operations, Go to Market and HR at C Suite/ Head of / VP / Senior Management level. To learn more about our services or Austin-based partnership opportunities, contact our Head of Austin Director, Elliot Jackson.
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