Welcome to Phase Two of a four-part Splitting Equity Series. If you missed it, start your journey here: Introduction - Early Startup Equity — Getting it Right before continuing on if you haven’t already, and go in order from there.
Phase One - Startup Equity - Avoiding Early Mistakes
Phase Two - Part 1 - How Startup Equity Works
Part 2 - Startup Stock Options
Part 3 - Startup Stock Vesting
Part 4 - Startup Stock Valuation ( ←YOU ARE HERE 😀)
Phase Three - How to Split Equity
Phase Four - Equity Management
Let's continue!
Early-stage startups use a Stock Valuation to determine their fair market value. This will determine everything from how much a venture capital firm might receive for their investment to how we distribute empl...