Equity is the most expensive compensation you will offer, and it is generally a bad idea to offer it because you need services you could have paid for. But it all depends on the amount of equity. If you plan on raising investment from serious investors, you will eventually be asked to defend your cap table. The only time I ever offer equity is if I can secure an advisor who moves the needle, securing long-term employees or cofounders. I always try and pay for it upfront. If I don't have the money, I find other ways to generate revenue and pay for it.
When I do trade equity for services, I ensure it is a long-term relationship with strategic value. And then I only offer up to 1%. I may offer 1% per year if they stick around. These are only my personal preferences. I hope that helps.
Subject: Thoughts on offering equity as opposed to contracting out for pre-market technical website work Attachment: GroupRequest #8f2999b6-f4e1-4241-b6b9-0b0bd959400f
Equity is the most expensive compensation you will offer, and it is generally a bad idea to offer it because you need services you could have paid for. But it all depends on the amount of equity. If you plan on raising investment from serious investors, you will eventually be asked to defend your cap table. The only time I ever offer equity is if I can secure an advisor who moves the needle, securing long-term employees or cofounders. I always try and pay for it upfront. If I don't have the money, I find other ways to generate revenue and pay for it.
When I do trade equity for services, I ensure it is a long-term relationship with strategic value. And then I only offer up to 1%. I may offer 1% per year if they stick around. These are only my personal preferences. I hope that helps.
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