Comments on: Compensation Structure for Early Companies http://www.ezran.org/blog/2008/10/compensation-structure-for-early-companies/ Ezra -ez- Nugroho's blog Fri, 20 Aug 2010 00:48:38 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Jes http://www.ezran.org/blog/2008/10/compensation-structure-for-early-companies/comment-page-1/#comment-68 Jes Wed, 22 Oct 2008 15:44:02 +0000 http://www.ezran.org/blog/?p=121#comment-68 If you were bootstrapping the percentages would be higher. Much of these numbers are this low to 1) cut out a share for the VCs, and 2) cut out future shares for additional rounds. It's a built-in "tax" of using VC money to fund the business. If you bootstrap you are going to "cash out" at the bootstrap exit which would be IPO or M&A. If you were bootstrapping the percentages would be higher.

Much of these numbers are this low to 1) cut out a share for the VCs, and 2) cut out future shares for additional rounds. It’s a built-in “tax” of using VC money to fund the business.

If you bootstrap you are going to “cash out” at the bootstrap exit which would be IPO or M&A.

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