Newbie here. What are typical terms to bring in an early employee or new tech co-founder after beta? Is there a way to be fair & generous so they are motivated, while protecting the company if after a certain period they don’t deliver or don’t work out? Do they vest immediately? Appreciate your feedback.
Questions
Early employee & co-founder arrangements.
3 answers from the community
A· Sep 23, 2015
4 year vest, 1 year cliff. Salary at 50% of market rates. Do you have traction or revenue? If not, 10% or higher. If so, 5% or less.
A· Sep 23, 2015
No revenue yet. Just getting initial traction. What is meant by " 10% or higher. If so, 5% or less"? Is that the suggested amount of equity to give co-founder at this stage? Is that typical or on the low side?
Maybe not if they are also getting paid some salary as well.
A· Sep 24, 2015
Suggested amount of equity
If no revenue, but good traction, 10% to 15%. No revenue, no traction, the sky is the limit