Where they should focus varies from company to company. Equity refers to ownership of the company, and this can be extremely valuable if the company ever sells or goes public (learn more about startup fundraising here and in our eBook, How to Get a Job at a Startup). But receiving equity is no simple matter—equity packages come in all shapes and sizes, and it’s important to understand the ins and outs of what you’re getting before you join any start-up. Startup Equity Calculator - To Get Started. Equity is often the most confusing and intriguing part of a compensation package at a startup. To get you started, here are some key questions you should ask yourself and your potential employers to help you evaluate your offer. The startup you work for is gaining acceptance in the market and with remarkable growth, you are now eyeing the prospects of an IPO. One camp believes that a full-time CFO at a Pre Series-B stage is an unnecessary expense especially given that the company is too young to reap the full benefits of said CFO's range of skills and qualifications. So an equity investment in a seed-stage startup is an even riskier game than the very risky game of an equity investment in a VC-funded startup. Hiring a full-time CFO at an early-stage startup is a difficult decision, the merits of which are often debated. Here's an illustration from Dustin Moskovitz's presentation, Why to Start a Startup from Y Combinator's Startup School on the chances so "making it" for a startup that has already raised seed funding . This article was originally posted as "Equity for Early Employees in Early Stage Startups". Veteran startup mentor, executive, blogger, author, tech professional, and Angel investor. If you are anywhere near early stage, probably nothing because you don’t need a CFO (maybe you need a part time accountant). In a post on his SoCal CTO blog, Tony Karrer, Founder and CTO of TechEmpower, Founder and CTO of Aggregage and organizer of the LA CTO Forum and Startup Specialist Network, shares stories based on his experience working with over 30 startups over the past 15 years.. The journey to founding and running a startup from an idea is indeed very exciting for entrepreneurs even though the process carries its own share of risks and tough decisions to make. Welcome to the Co-Founder Equity Calculator!It is based on almost 3 years of one-on-one discussions with entrepreneurs through the co-founders meetup and 10 editions of the startup conference.. In some, enterprise-wide strategic and transformational initiatives (such as value-based management, corporate-center strategy, or portfolio optimization) require considerable CFO involvement. Newly appointed CFOs are invariably interested, often anxiously, in making their mark. The Startup CFO Dilemma. Fill out as many of the questions below as possible. What rewards should you expect at the IPO stage? The fruits of your team’s labor are at hand. One of the most difficult decisions you will have to make as a founder is how to distribute equity among your co-founder(s) and earliest employees. But do you know how your executive compensation package will change as a result of becoming an employee of a public company? You could also check out Angel.co for job listings to get an idea of which roles are offered how much equity. Hard to say without knowing what stage your company is at.