Startup Equity Compensation

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DiplomaticMorganite
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10 Questions

What are the three main buckets that founders need to consider when dividing the ownership of their startup?

The founders, the employees, and the investors

What percentage of equity shares do UK startups typically set aside for the option pool during funding rounds?

5 to 20%

For companies raising early-stage funding between £200k and £3 million, what percentage of overall company equity can be put aside for the option pool?

10%

How much equity should be given to the first employees (up to 10) during the early stage?

1%

What is the Employee Stock Ownership Plan (ESOP)?

A plan that determines the amount of equity to be reserved for employees

Which organization retracted a pledge to avoid 'abnormal pricing' made by 16 carmakers, including Tesla?

China Association of Auto Manufacturers (CAAM)

What did the China Association of Auto Manufacturers (CAAM) cite as the reason for retracting the pricing pledge?

Antitrust law

Which carmaker rolled out a global programme that allows buyers to get extra incentives through referrals from existing customers?

Tesla

What strategy did Tesla adopt to boost sales, which is commonly used by traditional carmakers?

Referrals from existing customers

Which organization recognized that the pricing pledge violated China's antitrust law and decided to delete it from the commitments signed?

China Association of Auto Manufacturers (CAAM)

Test your knowledge on startup equity compensation with this informative quiz. Learn about the key factors founders need to consider when dividing ownership, how much company equity should be reserved for employees, and more. Perfect for startup enthusiasts and aspiring entrepreneurs.

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