Startup equity refers to the ownership or shares in a startup company. When individuals, often founders, employees, or investors, contribute capital, services, or other forms of value to a startup, they are typically rewarded with equity, representing a share of ownership in the company.
Ownership Stake: Equity represents a proportional ownership stake in the startup. The percentage of equity a person holds is determined by factors like the amount of investment made, the role played, and agreements among founders and investors.