Are there any organizations out there that will take an equity stake in a SaaS software business in exchange for providing sales and marketing services?

Oh plenty.

But usually – don’t do it. There’s usually just too much of a mismatch on economics.

If the contractor is good, they will ask for a ton of equity. You are so early. They will want a lot of the company. You want to give that VP of Sales 0.5% to work for you for free? Well, if you are pre-revenue, it’s just not work it. The math doesn’t pencil out.

If the contractor is mediocre, they may not ask for a lot of equity. But that’s a sign right there.

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Published on October 17, 2017

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