For most early-stage ventures, there are no strong motives for having an equity component in employee compensation.

Question

Quizplus · Accepted Answer

Early-stage ventures often use equity as a form of compensation to attract and retain talented employees who are willing to take on the risk associated with working for a startup. Offering equity can also align employee incentives with the success of the company and help to conserve cash.

For Most Early-Stage Ventures, There Are No Strong Motives for Having