Cal from Cake Equity shares valuable insights on how startups can effectively use equity to engage advisors and contractors while avoiding common pitfalls.
Key insights:
- Equity can be a powerful tool for engaging strategic advisors and contractors
- "Sweat equity" refers to using equity to compensate contractors instead of cash
- FAST agreements (Founder Advisor Standard Template) from the Founder Institute provide standardized resources
- Be careful not to give away too much equity without getting proportional value
- The Cake Equity platform simplifies the process of granting equity to advisors, contractors, and team members
With the right approach and cap table and equity management software like Cake Equity, startups can leverage equity grants to build strong relationships with advisors and contractors while maintaining appropriate equity distribution.
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