Should I Give Away Equity? – Trajan King

Should I Give Away Equity?

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One of the most common questions we get from founders is: should I give away or reward people with equity?  If so, how much?

There’s no standard answer, but in this episode we discuss some things to consider to both protect yourself and incentivize key founders and employees to build the long-term value of the company.

Timestamp:

0:00 – How should I give away part of my company?
0:45 – Use it to incentive and reward using an equity vesting schedule
1:20 – Protecting yourself
2:00 – Don’t get stuck with a bad partner
2:10 – How a vesting schedule works
3:40 – Limiting your downside
3:55 – Equity hoarding can hurt you

Have you ever rewarded someone with shares or options?  How did it go?  Please share your experience below.

If you’re considering it and have questions, post it below.

About the author

Trajan King

Hey hey. I'm Trajan. I'm a minimalist entrepreneur who loves exploring the world (42 countries), learning new things (7 languages) and trying to get better every day (working on my backsquat).

I write about entrepreneurship and building an optimized and happy life through systems, good habits and scientific research.

Join me and we'll discover how we can build businesses we can be proud of.

By Trajan King

Trajan King

Hey hey. I'm Trajan. I'm a minimalist entrepreneur who loves exploring the world (42 countries), learning new things (7 languages) and trying to get better every day (working on my backsquat).

I write about entrepreneurship and building an optimized and happy life through systems, good habits and scientific research.

Join me and we'll discover how we can build businesses we can be proud of.

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