Equity Compensation for Early Employees

The video tutorial explains how startups can offer equity compensation to attract skilled employees when they cannot afford market-rate salaries. It covers the methods of awarding equity, such as shares or stock options, and the benefits of stock options, including tax advantages and potential future gains. The tutorial also discusses how to value equity compensation based on the company's current value and the employee's contribution.

What is the significance of allowing employees to vest in ownership over time?

In what situation is it easier to determine a company's valuation?

What factors should be considered when calculating how much equity compensation to offer new employees?