Tagged Questions

4
votes
2answers
227 views

Left my startup pre-launch. What percent equity is fair?

6 months ago I quit my job to start a startup with two other people. I'm the business guy. I worked full-time on the project from day No. 1, and made substantial contributions to branding, customer ...
0
votes
3answers
74 views

How do I add a new business partner?

We are a tech consulting company and our current group consists of four equity partners. We are interested in adding a new "business" partner, as our current partners are all technical, but we know ...
-1
votes
1answer
60 views

What should get a friend with an idea to smartphone app? [closed]

My start-up team knows someone who has come up with an idea for a new social application. The potential is hard to forecast, and we can't be sure the effort will pay off. We consider to implement his ...
1
vote
2answers
142 views

CEO didn't really function for a year+, steps down, but want to keep his equity minus a bit. Make sense?

We are 3 partners, working on a mobile / web startup for a year and 4 months. The CEO didn't put this startup as his #1 priority as he's involved in some other ventures. Apart from a meeting or a ...
0
votes
1answer
75 views

Equity split 50/50 and past contributions

I've checked other questions but none cover the topic of past contributions. I'm wondering how much weight does time spent before incorporating matter. Do Founder A earlier contributions have enough ...
1
vote
2answers
120 views

How much equity for co-founder reducing role for academic program?

I'm a technical co-founder in a pre-funding company in a niche tech segment, working with two non-technical co-founders who have largely overlapping skill sets. I met them at a networking event and ...
-1
votes
3answers
185 views

How to fire my Partner

I started a company in August of 2012 signing up 25 customers as a separate part of a corporation I have had since 2010 and brought in a partner in September. The partner did not put in any money but ...
0
votes
1answer
167 views

What percentage to give UI/UX designer co-founder? [duplicate]

This is a general question for company shares: My partner and I have an equal stake in our company. We want to bring in a designer since both of us suck at UI. We have one in mind. Since we own the ...
1
vote
1answer
155 views

Splitting equity between founders

X was working part-time on an idea and after about a year and a basic demo in hand, he talked to two potential people (A and B) who would become co-founders but would work part-time just like X. The ...
2
votes
0answers
44 views

how to proceed with negotiations with contractor/early employee [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? I am one of three cofounders at an early stage startup. We have been working with an outsourced ...
3
votes
3answers
196 views

Do I have to sell my shares to my cofounder?

Our company ran low on funds about 4 months ago. We decided it would be best If I took on an advisory role and went to work elsewhere to cover my personal expenses. I have vested shares in a large ...
2
votes
1answer
204 views

Startup equity for co-founder

I've been working at a pre-launch startup for the past year (going to launch in the next several weeks). I'm supposed to sign my Stock Purchase Agreement soon, but wanted to run this by to see if I am ...
1
vote
1answer
116 views

Designer Pay and Equity

We have a physical product, with proprietary IP. My partner and I own 98.25% combined. We issued 1.75% ownership to a designer who wanted equity versus working "freelance". The designer owns his own ...
8
votes
2answers
258 views

Late founder equity allocation

Guy is late coming founder, the company not yet incorporated. I designed the product (several biomed multisensor devices) and taken it from concept to a mature prototype ready for manufacturing (1 ...
0
votes
0answers
12 views

Seek advices for equity distribution about our situation [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? We are still in the early stage of a company doing seo syndication tool and I would like your ...
1
vote
2answers
198 views

Deciding between equal and unequal equity splits

I have read the multiple threads about equity splits but I am getting mixed answers. Mainly between this thread which pointed me to this The Founders' Pie Calculator which states it is a rookie, ...
2
votes
1answer
165 views

Technical Co-Founder Contract

There are a couple startups I'm thinking about joining. They are in very early stages (seed round or incubation). I am interested in the position of technical co-founder. They've all asked that we ...
0
votes
0answers
68 views

Toughest Exercise: Equity Split [duplicate]

Possible Duplicate: Is performance based equity vesting possible? Forming a new software startup, how do I allocate ownership fairly? The venture was started by "A" and "B". "A" worked ...
5
votes
2answers
198 views

What happens to the unused portion in an option pool at the point of an exit/acquisition?

Some details regarding my company: I started off as a single-founder bootstrapped company (100%-owned). Later I brought in two co-founders at 20% equity each. So equity split was: Myself - 60% ...
0
votes
0answers
21 views

Joining a startup [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? Apologies for the lack of brevity, but I wanted to give you a full picture of the situation. ...
0
votes
0answers
75 views

Change in equity split when founder is dying?

I'm currently involved in a software start up with two other people. Abe started the company a couple years ago. He outsourced development for $100k. He's worked a lot of hours, but on a part time ...
1
vote
0answers
56 views

Technical Cofounder - How much equity do I ask for? [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? So, the situation is this: Last year I was working freelance, and I was commissioned to build a web ...
1
vote
0answers
17 views

How to divide equity between founders in university spin-off? [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? The history of the project: The project started four years ago based on the works and idea of one of ...
0
votes
1answer
199 views

We are bootstrapping our startup, Is this a fair compensation offer? [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? We have a team made up of four co-founders. Our equity split is: Co-founder #1 40% Co-founder #2 5% ...
2
votes
3answers
500 views

How to fire a co-founder that owns 30% of shares?

Co-founder performance in the startup has dropped. He clearly has other priorities in his professional life, like other startups, and he doesn't want to give up his 30% shares. The only written ...
1
vote
2answers
75 views

Question about terminating contract with employee

Not sure if this the right place to ask but here it goes: We (myself and 2 founders) found our startup about a year ago. Then we brought on an employee to work part-time and had him sign a contract. ...
4
votes
1answer
190 views

Received a technical co-founder offer contract. Advice

Myself and two partners are the business end of a new start up. We have been looking for a fourth and final co-founder, which would be our programmer. We found one that wants to be a part of what we ...
3
votes
2answers
144 views

Equity share in product not company

thanks for taking the time to read this, any advise is welcomed. A friend of mine is trying to get launch a new piece of software. As we work well together and he wants to keep initial development ...
2
votes
3answers
111 views

Unorthodox Startup Formation

Two other founders and I are planning to start an S-class tech firm. All of us have a government background and are new to the process: one founder is the notional CFO and has thus far handled the ...
1
vote
2answers
316 views

Am I a cofounder and how many equity shares should I take?

An engineer creates a product with most fundamental functions and is almost ready to establish a new company. He wants me to be in charge of the marketing for the new company/product. For now, only he ...
0
votes
0answers
139 views

Vesting for large group of part-time cofounders

I am involved with a startup that has a very unique structure. We started as friends, all working in our spare time, never intending for it to become a business. Eventually, it started catching on and ...
0
votes
1answer
193 views

Existing startup new co-founder equity

I have been building a SAAS product for a vertical industry for the last two years. The product is now pretty mature. As a geek my sales and marketing skills are pretty rubbish so am are looking at ...
0
votes
1answer
158 views

Equity sharing with new cofounder

I contracted the development of a prototype for my web app. The developing company liked the idea, so rather than paying them cash in full, they agreed to a reduced price in exchange for 20% of the ...
4
votes
2answers
224 views

Co-founder with non-voting shares

I have an offer on a table to join this really exciting venture at 50/50 split as a tech co-founder but the original founder insists on issuing me non-voting shares. He worries that he will loose ...
0
votes
0answers
143 views

Thoughts on equity split [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? I'd appreciate your thoughts on this situation: I am a developer that has worked on a on 2 products ...
8
votes
9answers
2k views

Co-founder wants to leave, do I pay him back the money he invested into the business?

My co-founder and I have been working on a business idea. We both invested money into getting it to a MVP stage, but it hasn't been launched and does not make any money. (It is basically a modified ...
2
votes
2answers
613 views

Co-Founder or First Employee ? How much equity?

Joined together to create a new venture with my ex-boss, we shared a great work dynamics and gelled well together, had complimentary skills & liked the idea and hence I decided to start together. ...
0
votes
3answers
143 views

Founder Shares for new venture - when one founder is only an advisor?

I am starting a new company with a long friend. He had the original idea but we both developed the idea and spent approx equal amount of funds to get it to the state of developing and launching with ...
0
votes
2answers
449 views

Startup equity share among co-founders: What is the fair thing to do

In a startup company, there are 4 people involved, and all of them work on a sweat equity basis. Here are the people and their role: Person #1: Helped shape the idea with person #2. One of the two ...
-1
votes
1answer
106 views

as one of the co-founders, can i have an equity and profit share both in mother holding corporation and subsidiary holding corporation?

the funders for my projects plan to put up a holding corporation. this holding corporation is intended to fund feasible projects by various project proponents not only those projects by me but ...
3
votes
4answers
473 views

Am I a co-founder?

I'm trying to figure out what my role is... Backstory: Late last year (October/November) I was asked by an acquaintance If I'd be keen to help develop a SaaS product that he & his brother had ...
5
votes
4answers
1k views

What to do with equity when leaving a startup you co-founded?

I have already read many of the posts here about this topic and I got very good insights already but I was hoping to get some tailored advice for my situation. I have been working two years in a ...
1
vote
0answers
85 views

Equity for a technical cofounder [duplicate]

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? I'm a developer who has been in contact with a nontechnical cofounder to become the technical ...
2
votes
2answers
187 views

Introducing the idea to friends I'd like to add to the startup - How to and at which conditions?

I'm in the process of trying to establish my first startup. At the moment I'm working with a friend of mine on developing the idea, and we had already created a prototype for our product on a mobile ...
3
votes
2answers
534 views

How much equity to give up front

Myself and my partner are both sales guys. I had a terrible business idea but after meeting with my future partner over lunch one day he made it better by with a few suggestions that I knew were pure ...
1
vote
1answer
356 views

Tech cofounder equity [duplicate]

Possible Duplicate: How to Divide Up Your Company's Equity I am teaming up with two co-founders to build a web platform. The two partners are business guys while I am the sole techie. I ...
1
vote
3answers
403 views

Dividing equity among cofounders when one person is doing most of the work

I shared my startup idea with two of my best friends and it seemed like a great thing to do at the time. The entire thing basically revolves around a particular kind of content and let's just say that ...
1
vote
2answers
631 views

Equity split and keeping control of an early startup LLC in the long term

The CEO of an early stage LLC plans to keep control of the company in the long term. To achieve this, he plans on keeping at least 51% of the equity. The company has 6 founders in total. While it is ...
2
votes
2answers
1k views

Non-diluting equity for founders on an early startup LLC

The CEO of a LLC early startup plans to assign non-dilutable equity to the founders. Each founder will take a small amount of equity, leaving a pool for future employees and investors. IMHO, what ...
4
votes
1answer
221 views

Start up valuation - how much equity

Approached by 2 founders that are very early days of executing an idea. They have some good .com properties that will be central to brand/idea and had recent offers around $100K, with one outlier ...

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