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Early employee & co-founder arrangements.

Newbie here. What are typical terms to bring in an early employee or new tech co-founder after beta? Is there a way to be fair & generous so they are motivated, while protecting the company if after a certain period they don’t deliver or don’t work out? Do they vest immediately? Appreciate your feedback.

  • 4 year vest, 1 year cliff. Salary at 50% of market rates. Do you have traction or revenue? If not, 10% or higher. If so, 5% or less.

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  • No revenue yet. Just getting initial traction. What is meant by ” 10% or higher. If so, 5% or less”? Is that the suggested amount of equity to give co-founder at this stage? Is that typical or on the low side?

    Maybe not if they are also getting paid some salary as well.

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