A Nigerian startup founder's guide to equity allocation
- Equity distribution determines ownership, control, and relationships within a startup.
- Factors such as contribution, skills, time commitment, and future scenarios should be considered when allocating equity.
- Employee stock options can be used to attract and retain top talent.
Equity allocation is a crucial aspect of startup management that requires careful consideration. Founders should approach it with a long-term view, taking into account factors such as contribution, skills, and future scenarios. Employee stock options can be an effective tool for attracting and retaining talent. When allocating equity to advisors, it is important to assess their contribution and establish clear terms. Legal guidance is essential to protect the interests of the startup.
