💰Trade your commission for more equity?

Question

If you’re in a start up your truly believe will make it to acquisition or IPO

would you consider offering to trade your commission for a quarter or two for more equity stake?

obviously there are factors to know that I’m curious to see what others opinions are

Accepted Answer

I was at a startup that I truly believed would "make it" (and they did) and you'll bet I tried everything I could to get more equity. It was great, every promotion I got, they gave me more equity. When the acquisition came along I was looking forward to all the houses I would buy. What happened? I was able to pay off my student loans... that's about it.

Equity is incredibly important, but if the company is several years old (unless you're getting A TON of equity), it's not likely to be life-changing. Be cautious of getting equity vs. cash.

Answer

If you're able to scrape to 1% and it sells for hundreds of millions. It's really what you believe about the company. I'd hate to take equity over commission in a company that may sell for like $5m.

Kanyebut4sales

💰Trade your commission for more equity?

3 comments

Kanyebut4sales

💰Trade your commission for more equity?

3 comments

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