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Startup Equity Gap Finally Closing?
13 Aug
Summary
- Startup equity grants lack transparency, unlike salaries.
- New tools aim to close the information gap for employees.
- Verified data helps compare equity grants across startups.
For startup employees, understanding the true value of an equity grant has remained a significant challenge, starkly contrasting the transparency now common for salaries. While platforms like Glassdoor and LinkedIn offer salary insights, startup equity data has evaded similar disclosure laws, leaving employees largely negotiating blind.
This disparity is changing with the introduction of tools designed to close the equity information gap. Equitybee Benchmark, for example, offers a free resource utilizing data from over 9,000 verified option grants across more than 2,500 U.S. startups. This verified data provides a more accurate picture than self-reported surveys, addressing the core problem of employees lacking visibility into capitalization tables and liquidation preferences.
