Determining a fair equity agreement for a new startup depends on several factors, including the startup’s stage, valuation, funding amount, market norms, and the roles or contributions of the parties involved (e.g., founders, employees, investors, or advisors).

The venture capital (VC) industry involves firms or individuals investing money in early-stage, high-potential startups or small businesses in exchange for equity (ownership stakes).

A career in venture capital is often regarded as one of the most difficult paths to break into in finance. The industry appears closed, opaque, and dominated by a narrow group of former founders, investment bankers, and elite university graduates. While there is some truth to this perception, it obscures a more practical reality.