Questions

We are in the common stock series. At the moment I have been investing 32 hours a week in the startup for the past 4 months without receiving salary. I handle marketing, communications, PR and sales. The equity pool reserved for first employees is 40%. There are around 20 people working at the startup, from which maybe 6-8 invest the same or a bit more time as me. The two founders included. Thanks for your help.

When there's no cash flowing, I think a grunt fund is nice (http://www.slicingpie.com/the-grunt-fund-calculator/). The problem is often keeping track of work and effort done by everyone. Without knowing that, it's hard to determine value sometimes.

Aside from that, a grunt fund should also answer your questions about equity. Provided the other people in the startup are on board with this philosophy of course. Either way, it's a good guideline and a good way of thinking about things.


Answered 10 years ago

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