Launch Chat

LC036: Your Early Stage Equity Questions Answered

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Sinopsis

Today's question comes from Gary. I'm working with a new company and I'm trying to create an equity cliff investing schedule. I want to define criteria for what determines a cut-off for equity. If they leave or get fired, it's clear that they should lose equity, but if a company takes longer to get off the ground then they could pull back on effort, which should reduce their equity, too. How do you define these milestones?

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