What Startup Founders Must Know About Compensation

The Tough Questions Answered Here

Photo by Vitaly Taranov on Unsplash

It’s also very different for each stage of a startup’s life cycle and type of company.

The tax consequences of stock compensation are so complex that many CEOs and CFOs mistakenly believe that they are tax-free.

This is because venture capitalists and investors view startup equity compensation as “Founder Monies” — money that entrepreneurs could invest or otherwise use for personal benefits if they didn’t take equity instead.

This culture of accepting the first offer without negotiation can lead to founders making decisions they may later regret.

Founder of Cudy Technologies (www.cudy.co), a full-stack EdTech startup helping teachers and students teach and learn better. I am also a mentor and investor.