Equity

“So when homeowners across the country have an average of about 300,000 dollars of equity, then we know that there is room for people to refinance and take money out of their own home to buy another home or an investment property.”

“They would use equity to pay for work that was Getting reimbursed on a very short cycle, which is a terrible use of equity dollars, so, like, a really expensive way to finance this kind of work. And so credit makes, like, much more sense, right? It's much more…”

“The asset class buckets that we have today on the equity side between public and private, it's about 65% of the portfolio.”

“One of the things you learn when you sell a company is that at some point in time, it becomes too late. You can't reverse this decision. So you have, from the get-go, you have to decide how you're going to compensate in equity, your founding team, your staff m…”

“The rational reaction from employees will say, you know what? I don't want your equity. Give me more money.”

“Well, I think venture debt. Or any sort of debt works really well when you figured out your unit economics around customer acquisition. If you haven't necessarily figured out your unit economics around customer acquisition, I think it can be a bit daunting for…”

“The idea, I don't really weigh it that much. I don't think any idea is really worth equity, but what if someone brings a significant audience, or they bring significant financial assets, some cash, or they have an amazing network, or they have, you know, somet…”

“I think that it is, people say it's this sort of chummy, like, collaborative thing where we're all kumbaya and having fun, and then, like, You know, you get to it, and someone just, like, elbows you out of the way. It's not. It's a competitive market. We're al…”

“Equity is the most expensive currency. This is the lesson almost every founder learns too late, especially first time founders. Every dollar you raise costs you ownership forever.”

“If it's special to you, hold on to your equity. Take the risk, get more financing, but keep it yours because you'll always be able to protect your baby. You know what makes it work better than anybody else.”

“And I give people tons of equity. But there's a catch. It could vest, but you can't sell it for five years, and most of it vests in the last two years.”

“Tech people, we treat our employees so much better because we give them equity, right?”

“If you're at a fast growing company that is doing really well, your equity is going to be way more meaningful than your OTE.”

“And I'm with Jason, I'm about 75% equity, mildly terrified, you know, almost nothing in bonds and then rest in short-term and weird stuff.”

“No, I'm back where I was in 2008, a hundred percent equity in my personal position, a hundred percent.”

“If you're running a business and you understand all the different flexibility points at different parts of the capital structure on balance sheet and off balance sheet, You're gonna optimize and have better shareholder returns over time because you're gonna gi…”

“I think we could be more appreciative of equity. Employees, a lot of employees do not understand equity as well as US employees.”

“And I think if you look at the next wave of startups, a dramatic decrease in M&A, because instead of buy, you built and the aqua hire didn't prove out to be the best use of equity. A lot of the decision of buy versus build became easier as you thought about wh…”

“While I encourage founders to be really stingy with their equity at all times, but therein also is a great opportunity because the power of that equity should be able to provide you with the gunpowder or the working capital that you need to bring in additional…”

“Somebody who can do the systems, like there's a lot of people out there who would do that. They're usually not, they don't always have to be an equity person in your business. And oftentimes making them an equity person in your business is a mistake because th…”

“If we would have known that we would have cut costs A lot faster earlier. We would have probably taken down risk a little bit. We would have saved as much money as we can. We probably would have raised equity instead of debt during the time when we thought tha…”

“These people, you're going to give them a teeny, teeny, little, teeny sliver of equity that's going to vest month over month for a short period of time, and these people are going to achieve these really important milestones for your company so that you can ge…”

“It's only 14% of the population. They have 90 plus percent of all of the equity and all of the board seats.”

“Harvard did a study where they actually found no market increase in performance when they landed equity to individuals.”

“This kind of rigid oppressor, oppressed ideology, I don't know how anyone who looks at it can't see how it's problematic. We need a society that's not about you know, crazy notions of equity. We need realistic notions of opportunity. We need to focus on, on me…”

“I'm convinced like, you know, 80% of people just don't fully understand like their equity”

“In every generation, what happens? It's like you have a bunch of new people coming into society that are the youths, and they have this really interesting thing. Which is, they don't own anything, and like, they have no equity, and they have no control over sh…”

“Equity Is wage in the state of California. If you earn equity, your vested equity, it's like your wages. And when you leave, they can't say, oh, here's a bunch of other additional agree terms you must agree to in order to take what you've already earned. So th…”

“Every time that you hire someone new, what I really want you to do is mark your calendars for 30 days down the road, and ask yourself one question. Knowing what I know today, would I hire this person? At the end of the day, I'd like to nail that into Yes or no…”

“One of the obvious ways to test that is how widely is equity pushed down in the organization, because secure people will trust the people around them, encourage them. They want smarter people than them sitting next to them. And we'll reward those people, push …”

“And I think every person with an audience will eventually, the money that they make from equity in a business that they own will massively dwarf the money that they make from ad rates or sponsorship reads.”

“And because the broad thesis is that these audiences are still super underpriced, basically. That the equity you're giving up is you'll be more than compensated for. And I think that'll last for quite a long time.”

“Unlike equity in credit assets, aren't always priced based on risk. They're often based on who's allowed to hold them.”

“As a shareholder of a bank, I will say that banks should always take equity in case they may forgive. Even one rupee of a loan. If I forgive one rupee, I should have equity against it.”

“The moment you are an equity owner, you have a K one in 37 states and 12 countries and the tax bill alone for managing the equity, tiny equity stake you have can be worth more than the equity itself.”

“I think at the end of the day, for the most part, all VCs offer the same product. We are giving money and we are taking equity. What comes after that is obfuscated in a sales pitch.”

“Equity in, in startup land for your little dinky web you know, startup and whatnot, even if you raise fifty million or whatever it is, is a lottery ticket. You're going to win or you're going to lose. You're 99.999999% going to lose. It's worth less than toile…”

“As a rule, I would say, no, it's not required. I think it depends a lot on subject matter expertise. It depends a lot on also how you view the definition of what a co-founder is.”

“People that are way too focused on cash. Versus the equity. I do think that's more of a yellow flag.”

“Number of co-founders you have actually is probably the largest lever of what your equity is worth at the end of the day.”

“And then I guess, you know, last but not least is the college student who, like, in most cases isn't even offered equity. Like, that's like, you know, they're just the typer.”

“Equity tends to average around four.”

“You can't rely on minimum wage people to have motivation, and so I always figured if I take in a partner, the fact that they have equity in that individual location would make a big difference in the outcome, which is true.”

“Our debt capital, we have both cheap capital and very expensive debt capital. At some point, the expensive debt capital is worse than equity.”

“So if you can do it, I would definitely advise founders to bring Advisors in for equity, if you can. And I think the same applies for your internal growth team. You want to make sure that the teams are incentivized, not on activities, on doing stuff, because t…”

“Give your co-founder a lot of equity. And third, don't split your equity, 50, 50.”

“Incentivizing your team as much as possible on equity ends up being, like, the biggest lever you have from a cultural standpoint.”

“The most amount of equity you're going to give away is going to be now pre product market fit. So therefore I'd much rather spend a little bit. Get further along, prove that, and then have to give up less equity after.”

“If this person wasn't a customer, would they make for a good advisor? And if the answer is yes, then make them an advisor as a customer and compensate them with that equity.”

“One ratio that I like to look at, this is independently, so this isn't from, you know, any particular firm that, that pushes this agenda, but I like to look at it like a one to you know, one-third on debt and two-thirds on equity.”

“When it comes, especially to early sales hires, there's not enough emphasis placed on, on equity in sales. They give out equity for other roles. And I think equity is, is often something that founders don't really think of when it comes to salespeople. They re…”

“Nobody, nobody understands their equity and negotiates for it. Like in, in my career, I've had so few people actually read the document. I, I've probably had like a dozen questions and usually it's on page two of a 75 page document, right? So like nobody reads…”

“I think commercial real estate is closer to equity than sometimes people really realize. So we sold out, when I first arrived, we used to have quite a big allocation to commercial real estate, and I thought, well, why have we got this? It's illiquid. I don't t…”

“What you have to be really careful about is often enough, what you give up is not just equity, it's optionality, right? It's optionality to go out and just do things without having to worry about the big picture all the time, just because customers are demandi…”

“We did do the debt financing and you know, we raised 250 K debt and then also two 50 K initially, you know, at 6.5 million valuation.”

“Even a small percentage of equity will be actually more powerful than sometimes a large amount of cash in, in some cases, right? For selected companies.”

“200,000 dollars of equity at Figma is going to be very different than 200,000 dollars at Maybe a small company that doesn't have a good chance of success. And is probably either going to get acquired for a nominal amount or just fizzle out because you know wha…”

“I don't think it matters at all. I think that what really motivates people is building shit that gets used in the world. I think people will say, and they'll fight for equity in money, but in the end, that's not what actually motivates them. Because I've seen …”

“The most important observation I've made in terms of Whatever it is, building wealth over time, is to make sure you're building equity in yourself.”

“If there are two companies growing from zero to about a hundred million in ARR, one of them has a burn multiple of four. The other one has a burn multiple initially starting at about three and then decreasing to about .75. Then just because you have to raise s…”