3 ms·
4% non-dilutable (if it really is so) and 8% dilutable may not be so different if there may be more rounds. And 8% is a LOT if they have cumulatively invested 4
by ericb 19y ago
4% non-dilutable (if it really is so) and 8% dilutable may not be so different if there may be more rounds. And 8% is a LOT if they have cumulatively invested 4.5 man-years and you have invested none so far.
If they give large percentages to every new person, the math doesn't add up and they'd have little left at the end.
- cstejerean 19y agoThere is a solution to giving large percentages to every new person: pay them a salary, even if below market. If you're paying someone with equity only you're asking them to assume all the risk of the company failing, which is fine, but you'll need to compensate them for that risk in addition to compensating them for the work they will put in.