Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.
Equity refers to the ownership interest in a company. It represents a claim on the company's assets and earnings. As a company grows and becomes more valuable, so does its equity.
Equity is usually divided into shares, which can be sold to raise capital or given to employees and executives as part of their compensation. For startup founders, their equity stake in the company is typically their primary financial incentive for growing the business.
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