Startup Equity & Vesting: How to Compensate Team Members Without Money
Founder Institute
131

When I started my first company I created a spreadsheet that calculated what 1,000 hours of sweat equity was worth. I started with the assumption it would be worth $1,000,000 within 2 years of my first person joining. Turned out it was worth 2.5 million within 6 months based upon my first round of funding. Luckily I had the spreadsheet to calculate the value of everyone’s equity. Here is a link to that spreadsheet – https://www.dropbox.com/s/w7j68oapifkyl2r/Funding%20%26%20Equity%20Buyout%20Equations%20-%20InnerSell%20-%20Master.xls?dl=0.

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