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Team Equity: Hot or Not for Early Investors?

ArneBassezArneBassez subscriber Posts: 1
edited January 2014 in Startup Funding
With our software start-up we currently have a decision to make: share equity with certain members of our team or not?
We hope this community could provide us with some points of view!?
Sharing ( a limited amount of ) equity with teammembers, in our opinion, is good for two things

Lowering start-up development costs (pay less, give equity)
Envoking long-term commitment and an overall sense of ownership of the teammember

However, recently we asked ourselves the question: How do angel investors or VC's look at this?
Will they embrace the fact that they can now invest into a larger team?
Will they be repelled by having a larger amount of different people holding equity?
We welcome all point of views, personal experiences and tips to deal with this issue!
Kind regards,
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