Service Providers Seeking Equity

Shades of the dot-com days are back as service providers are now seeking startup equity over or in addition to cash payments.

Some note caution as payoffs can take years, valuations are starting to decline with the market and the closing of the IPO window may result in a severe liquidity crisis.

Some entrepreneurs are reluctant to give equity as it dilutes current shareholders and makes your landlord your partner.
http://www.wsj.com/articles/service-providers-see-gold-in-shares-of-startups-1441056504

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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