- Equity stock represents ownership in a company and is typically distributed in the form of shares.
- The value of equity stock is determined by various factors such as the company's growth potential, market conditions, revenue, and profitability.


- Sweat equity refers to the contribution made by individuals to a company in the form of their time, effort, and skills instead of monetary investment.
- It is often recognized through the issuance of equity stock or stock options to compensate for the value created through their contributions.


- Equity distribution should be based on the founders' contributions, responsibilities, and future expectations.
- One approach is to allocate equity based on the founders' initial investment or the market value of their individual contributions.
- Another approach is to distribute equity based on the future contributions and responsibilities of each founder.
- It is important to establish clear guidelines and agreements to avoid disputes in the future.


- Responsibilities should be defined based on the founders' strengths, skills, and experience.
- Each founder should have a clear role and set of responsibilities to ensure efficient operations and decision-making.
- Regular communication and coordination among founders are essential to maintain accountability and prevent conflicts.


- The technology stack refers to the combination of programming languages, frameworks, and tools used to develop a software product.
- Choosing the right stack depends on the startup's specific needs, scalability requirements, and the founders' technical expertise.
- It is crucial to consider factors such as compatibility, security, performance, and maintenance when selecting the stack.


- Salaries should be determined based on industry standards, the financial capacity of the startup, and the founders' roles and responsibilities.
- It is common for founders of early-stage startups to forego or take minimal salaries to reinvest the resources into the company's growth.
- However, it is important to ensure that founders can sustain their personal expenses to maintain their dedication and focus.


- Compensation distribution between co-founders should be based on their contributions, responsibilities, and equity ownership.
- Regular evaluations of performance and value creation can help determine the fair distribution of compensation.
- It is recommended to have transparent and open discussions among co-founders to address any concerns or discrepancies.

In conclusion, valuing a 5-month-old startup involves considering factors such as equity stock, sweat equity, equity distribution, responsibilities, technology stack, salaries, and compensation distribution between co-founders. Clear guidelines, agreements, and open communication are crucial for a fair and successful startup journey.