Equity

Definizione

Equity is ownership in a company, represented by shares. Startup equity comes mainly as common stock (founders, employees) and preferred stock (investors).

Come si presenta nel fundraising

Fundraising is selling equity for capital; compensation below market is offset with employee equity; every structural decision eventually cashes out through who owns what.

Domande frequenti

What is the difference between common and preferred stock?

Preferred stock carries investor protections like liquidation preferences and anti-dilution; common stock is what founders and employees hold.

How is startup equity taxed?

It depends on instrument and jurisdiction; in the US, early exercise, 83(b) elections, and QSBS treatment materially change outcomes, so get specific advice early.

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