What’s the best way to distribute company equity?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Employee Equity – AVC

Where Andy [Rachleff] and I differ a bit is how to calculate how much equity should be granted. Andy suggests using market comps. I don’t like doing that because 0.1% of one company can be worth a lot more or less than 0.1% of another company. I prefer to issue equity based on a multiple of current cash comp divided by the current valuation of the business. I lay that all out in my Skillshare class. While I don’t call out promotion and performan… (read more)