🗜️ESOPs are as much for your benefit as your VC: There are many ways VCs can hurt startups — this isn’t one of them
🍤 Startups shouldn’t skimp on ESOPs: This is the capital you use to recruit talent
Let me expand:
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Now I want to address how VCs think about Employee Stock Option Plans, why they sometimes (and legitimately) frustrate founders, and how to think of them productively.
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Especially at seed.
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Your small team might be world-class for your current goals, but it’s likely those goals will change — in the next 18-24 months & great talent will be essential.
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Be careful not to be penny-wise and ESOP foolish.
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