Startup Equity Compensation

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Questions and Answers

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

  • The founders, the employees, and the customers
  • The employees, the investors, and the customers
  • The founders, the investors, and the customers
  • The founders, the employees, and the investors (correct)

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

  • 20 to 40%
  • 30 to 50%
  • 10 to 30%
  • 5 to 20% (correct)

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?

  • 15%
  • 5%
  • 20%
  • 10% (correct)

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

<p>1% (B)</p> Signup and view all the answers

What is the Employee Stock Ownership Plan (ESOP)?

<p>A plan that determines the amount of equity to be reserved for employees (C)</p> Signup and view all the answers

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

<p>China Association of Auto Manufacturers (CAAM) (B)</p> Signup and view all the answers

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

<p>Antitrust law (D)</p> Signup and view all the answers

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

<p>Tesla (A)</p> Signup and view all the answers

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

<p>Referrals from existing customers (A)</p> Signup and view all the answers

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

<p>China Association of Auto Manufacturers (CAAM) (C)</p> Signup and view all the answers

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