Common stock or stock options when getting a co-founder prior to seed funding?


2

I have built a startup in the last 2 years by myself and have a decent amount of traction. While going out looking to raise some seed capital, one the things that keeps coming up is having a co-founder.

And I have a person in mind who would make a great co-founder.

The thing I'm struggling with is how to compensate that person in terms of equity. Should I offer him common stock or stock options?

The reason I'm conflicted if stock options should be enough:

  • Been working on this startup myself for 2 years.
  • Invested a lot of my own money to get the ball rolling.
  • Traction is already there (which is often the biggest battle co-founders face).

Co-Founder Equity Compensation Stock Options Common Stock

asked Jun 17 '15 at 14:13
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Frederick Castillo
11 points

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Co-Founder Equity Compensation Stock Options Common Stock