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GLOSSARY

Equity

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Equity is ownership in a company represented by shares. It is a key way to attract and retain talent, align interests, and raise capital.

What is Equity?

Equity is a stake in your startup given to employees or investors in exchange for their contributions. It represents ownership and a share of future profits.

Why Equity Matters

Equity is crucial for attracting top talent, motivating team members, and securing funding. It aligns interests and incentivizes everyone to work towards the company's success.

Examples of Equity

  • Offering equity to early employees in lieu of high salaries
  • Raising capital by selling equity to investors

Related Concepts

Equity compensation, stock options, dilution, and vesting schedules are all closely related to understanding and managing equity in startups.

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