What this is
Trading fee for ownership, structured so the equity is actually worth holding. Frequently a way of not paying you unless the terms are right.
What you get
Where it sits
Building businesses that outlast the career that funded them.
Frequently asked
Only where valuation is defensible, vesting is fair and liquidity is realistic. Otherwise take the fee.
Information rights at minimum, plus consent on material decisions and anti-dilution where possible.
It attaches to your name. That risk should be priced into the terms from the start.
Equity at an inflated valuation in exchange for a real fee is a discount, not an investment.
Information rights, anti-dilution and consent thresholds decide whether minority equity is worth anything.
Equity with no realistic route to liquidity is a number on paper. Ask before signing, not after.
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