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Fair enough. I was speaking generally. In the case of this specific venture, you may very well turn out to be correct. Good luck with your new business!
by downandout 9y ago
Fair enough. I was speaking generally. In the case of this specific venture, you may very well turn out to be correct.
Good luck with your new business!
- justin 9y agoThank you! To expand on my point further: the same logic could be used to say entrepreneurs with the means to do so should only pay employees in cash and not equity (because you can afford to do so and believe the equity will have higher economic value ultimately). However, pretty much all seasoned founders I know want to compensate employees with some equity, under the theory that those employees will be more motivated to see the business be successful. I think the same logic applies to your investor base (which is one of the selling points that crowd funding sources like Angel List or Funders Club maintain).
- jacquesm 9y ago> However, pretty much all seasoned founders I know want to compensate employees with some equity, under the theory that those employees will be more motivated to see the business be successful. AKA Golden Handcuffs of the lesser variety.