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  • March 2015
  • Background Note
  • HBS Case Collection

Equity Compensation in Startup Ventures

By: Ramana Nanda, Robert White and Stephanie Puzio
  • Format:Print
  • | Language:English
  • | Pages:14
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Abstract

Setting equitable and "market" level compensation for founders and early employees of startups is one of the most important elements of a new venture. It is not only central to attract and retain the best human capital for the startup, but is critical to align incentives between investors and management. This note provides a framework to think about compensation in startup ventures and is intended for entrepreneurs thinking about starting a venture, as well as for employees looking to join a young high-potential startup.

Keywords

Entrepreneurial Finance; Equity; Finance; Entrepreneurship

Citation

Nanda, Ramana, Robert White, and Stephanie Puzio. "Equity Compensation in Startup Ventures." Harvard Business School Background Note 815-074, March 2015.
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About The Authors

Ramana Nanda

Entrepreneurial Management
→More Publications

Robert F. White

Entrepreneurial Management
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More from the Authors

    • February 2021
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    SafeGraph: Selling Data as a Service

    By: Ramana Nanda, Abhishek Nagaraj and Allison Ciechanover
    • 2020
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    Biased Sampling of Early Users and the Direction of Startup Innovation

    By: Ruiqing Cao, Rembrand Koning and Ramana Nanda
    • September 2020 (Revised December 2020)
    • Faculty Research

    Impact Investment, Catalytic Capital and Blended Finance

    By: Tarun Khanna, Ramana Nanda, Benjamin N. Roth and Brian Trelstad
More from the Authors
  • SafeGraph: Selling Data as a Service By: Ramana Nanda, Abhishek Nagaraj and Allison Ciechanover
  • Biased Sampling of Early Users and the Direction of Startup Innovation By: Ruiqing Cao, Rembrand Koning and Ramana Nanda
  • Impact Investment, Catalytic Capital and Blended Finance By: Tarun Khanna, Ramana Nanda, Benjamin N. Roth and Brian Trelstad
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