We see it all the time: founders start their company and hand out equity early and often in hopes of growing as much as they can, as quickly as they can. They’ll give out equity to contractors, to advisors and to employees without really understanding what it is they’re giving. So we’re here to say: STOP. Here’s how NOT to screw up your Cap Table.

Chances are you’ve considered offering equity as a form of compensation to your team. But do you know when, why, or even how to offer equity compensation to your people?