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I am part of a software startup. We "hired" a hyper growth strategist (marketer) who is helping us to start the startup with his experience and background. He is asking for equity + cash, or just equity, or just cash.
Since we are running "semi lean" we decided to go with either equity or equity + cash.
Thing is, my business partner doesn't want to give out too much equity, and the advisor mentioned that 2-8% equity is on the lower end (in the context of standard equity rates). He wants us to give him a number.
Also my business partner wants to structure out a plan to where the equity is earned.
How much equity should we give?
Since he is a hyper growth strategist, how should we structure it?
For example if we give him X%, should we make him earn for (x-8)% in the first year? and then so on the next year?
should we structure the equity off performance?
-- xyz amount of growth = abc% equity
-- xyz amount of revnue = abc% equity
What are some good ways to approach this? Things to consider?
Since we are running "semi lean" we decided to go with either equity or equity + cash.
Thing is, my business partner doesn't want to give out too much equity, and the advisor mentioned that 2-8% equity is on the lower end (in the context of standard equity rates). He wants us to give him a number.
Also my business partner wants to structure out a plan to where the equity is earned.
How much equity should we give?
Since he is a hyper growth strategist, how should we structure it?
For example if we give him X%, should we make him earn for (x-8)% in the first year? and then so on the next year?
should we structure the equity off performance?
-- xyz amount of growth = abc% equity
-- xyz amount of revnue = abc% equity
What are some good ways to approach this? Things to consider?
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