What is an employee with equity?

An employee with equity is a worker who receives a part of the property or economic rights of the company in which he works, usually a startup, in addition to his salary.

For the worker, to receive equity can be an opportunity to participate in the growth and success of the company in which he works. However, equity also carries certain risks and challenges, such as dilution (loss of ownership percentage due to new share issues).

Related concepts

• Equity
• Capitalization table («Cap Table»)
• Co-founder
• Pitch
• Venture capital
• MVP (minimum viable product)
• Startup
• Convertible participatory loan