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The first-time founder's ultimate guide to granting ownership stock in your startup

The first-time founder's ultimate guide to granting ownership stock in your startup
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Sharing ownership equity in your startup is one way that founders can compete for talent when a company is in its early stages.




Business Insider reached out to legal and financial experts to put together a comprehensive guide to help you get going.




In addition to explaining the difference between preferred and common stock, you'll be able to communicate to new hires exactly what their compensation package means.




Visit Business Insider's homepage for more stories.



Startups don't usually have the revenues to offer comparable salaries to more established businesses, but founders do have one key resource at their disposal: equity ownership of the company.
By granting employees either ownership shares in your company — or the option to purchase those shares — they stand to benefit in the event that your company is acquired or goes public.
Glen Evans, the vice president of core talent at the venture-capital firm Greylock Partners, said offering equity as a part of a compensation package can be a way to woo top talent who might otherwise get snapped up by a more established company.
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