Equity is the value of an ownership interest in a business.
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0answers
5 views
Equity/Profit share split for small projects with unknown levels of contribution
Alright, I have a pretty clear understanding of how to split equity for real startups, but how to do it for a smaller project (an app), with little acquisition potential (just profits), and a team ...
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0answers
16 views
Business equity [closed]
The last few months at my company have made me worried. I work for a small software development company, there were 5 of us: 2 techy's, 2 developers and my boss. 1 tech left leaving me to cover her ...
0
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0answers
49 views
What happens when I run out of money? [closed]
The startup I helped launch and have worked for in a management position for 2 years ran out of money somewhat unexpectedly and is in the process of raising more. So the CEO cut my hours (and all ...
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1answer
56 views
How much equity do I give [closed]
We are currently three partners in a tech start-up. I'm the founder and hold 85% of the stake. One of my partners is building the analytical engine which is kind of the backbone of our business and ...
4
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3answers
125 views
Fundraising seed capital with just a business plan and no product
We have a great idea for a product in a niche market ripe for a paradigm shift on the way business is done. All we have is a kick-ass business plan with detailed projections, costs, marketing, etc - ...
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2answers
68 views
Does equity stake truly affect voting position?
In this question, the original poster has a hidden question in:
Giving up an equity stake puts me at a disadvantage from a voting perspective (or does it?) Can you structure it as a non-voting ...
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1answer
60 views
How Long is A Sidekick Obligated to Be Your Partner? [closed]
Thanks for your help guys. I'm trying to understand the terms of "employment" for a startup side kick.
Basically, I've got a good idea for a startup. There's a kid who's going to Yale who wants to ...
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1answer
45 views
Investing in startups online
I've seen plenty of websites that utilize philanthropic crowd-funding, but I'm unable to find any websites that allow people to purchase equity online. Are there any? If not, for what reason?
Note: ...
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4answers
39 views
Non-dilutable options
I have an entity I've been working on for roughly 4 years, the last being a real push to get it out the door. A student recently joined me and got us into a student business plan competition and we ...
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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 ...
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3answers
73 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 ...
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2answers
82 views
Value of technical expertise vs. industry connections, initial risk, and business management
I have been given an offer to join as a partner for an existing startup as the technical owner, and am not sure what is fair in terms of equity.
The current owner has the connections and experience ...
0
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3answers
125 views
How much equity should I give investors
I am seeking a $2M investment to take my patented product to next level. I have been told my product is unique and can be used in a variety of industries by both commercial and residential users. ...
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2answers
53 views
Should initial contribution or future contribution determine equity stake?
I just launched my business which I have been developing for about a year. And in less than 2 months the business already has about 12 dedicated clients and we have made sales and refilled our ...
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2answers
42 views
Does having a controlling interest in a startup offer investors additional protection?
It reduces the risk for the entrepreneur but I also came across the complementary view that it might offer the angel/VC an added level of protection. How does that work?
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0answers
30 views
How to divide ownership among three founders - Founder A introduces Founder B to Founder C [closed]
I (Founder B) have contacts, relationships and business experience in a particular industry. Founder A introduces me to Founder C who has developed software and methodology/expertise that seems to ...
3
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1answer
113 views
Niche financial markets software product : How much equity in return for £100k?
Over the last two years or so I've been developing a software product in my spare time(I'm still currently consulting at an investment bank). It's fairly niche in that it's targeted only at banks and ...
3
votes
2answers
112 views
If all the employees are non-salaried founders, do we need to send out W2's?
We founded a C-Corp in fall 2012. None of us are taking a salary and there are no salaried employees. Do we need to send out W2's?
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1answer
67 views
What is a good cash/equity mix for a 1099 programmer and/or designer for 4 to 6 month term?
We have been coding now for about 6 months on our startup. Up until now, we have bootstrapped the entire project on pennies, being cash poor. Fortunately we were able to raise a small friends and ...
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2answers
94 views
How do divide up equity if I'm providing the idea, mentoring and a smalll amount of funding
I have what I think is a really good idea for a product/business. I don't have time to develop it so I'm thinking of sharing the idea with some entrepreneurship students at a local university.
I ...
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1answer
61 views
Best way to commercialize a software
My associates and I own a services business. To improve efficiency we started to developed own software two years ago. The software we developed seems to be very effective and time-saving for us and ...
0
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1answer
38 views
Equity distribution software SaaS spin-off
I have been working in a consulting agency for a couple of years. Besides my standard job responsibilities, I was accountable for the technology. Some years ago we developed a software, for internal ...
0
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1answer
47 views
How legally binding is a pre-incorporated agreement?
Our startup was founded by 3 people and is in it's final stages of development. One of the founders wants to pull out but keep their 33%.
We have a one page document signed by the three of us ...
2
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1answer
86 views
How much equity for a non-founding (but close) CTO
I am the founding President/CEO of a SaaS startup. I am the majority owner of the co with 60% of initial shares. I am a small biz guy who has worked with one other startup. I don't have a ton of ...
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1answer
66 views
equity max of 23% split among “development” — a ripoff?
I've been working on a project with three other people: one is a developer, one is a manager type, and one is a sales type. I'm a developer. The two developers were invited into the project by the ...
6
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3answers
199 views
Is a 50/50 equity split without 50/50 control a doable and wise thing?
I've found a great partner for my second tech startup, and want to structure this one better than the first, which made money but eventually got ugly due to poor choices my younger self made along the ...
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1answer
82 views
How do we earn real world cash from equity?
This question is about how does an owner of company who own n% equity of company as a technical co founder makes real world cash. This is not about regular share holder who buys share to make money. ...
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3answers
124 views
How much equity + salary should a Technical CoFounder get?
I am unable to decide how much should I get by reading the meta thread about equity hence I am asking it here.
I got offer as a technical partner in one web based start-up from two business guys with ...
2
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1answer
84 views
Equity in a business driven by software?
I am completely new to negotiating equity, and I don't know where I stand with regards to pushing back on potential offers of equity based on a new project.
If anybody could give me their view on my ...
2
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3answers
214 views
Did I Make A Mistake On A 60-40 Deal?
I am a software engineer, blogger, marketer and upcoming entrepreneur. I just programmed an app to help corporate sites in marketing. I did all that alone, launched it and started getting clients. I ...
2
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1answer
79 views
Have good MVP, need capital to grow, new to getting funding
We have what we believe is a pretty solid MVP for a enterprise software product. Without much advertising, we've had people find our website and purchase and use the product, and the initial feedback ...
4
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1answer
185 views
I was fired and the company is planning on selling immediately after my shares expire
I had an employment agreement with a company that stated my equity (based on shares vesting over a 4-year period) would continue to be honored until up to 120 days after my departing the company. I ...
2
votes
3answers
152 views
What to do with equity if co-founder / early employee quits?
I founded a company on my own a couple of years back. Got a couple of small clients on board and started making money (not a lot!).
Worked for 1 year on it alone and decided to get an excellent ...
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1answer
34 views
Buy out scenario and bringing on an equity investor
A company has $180,000 invested into it. In order to buy out a partner I need $88,000. My current manager wants to invest in the company and I am encouraging it in order to keep a long-term employee ...
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4answers
93 views
Verbal Partnership Agreement Binding?
I have a provisional patent for a product that I have been developing. I had a meeting last weekend with two individuals and we have verbally agreed to form a partnership. The partner who will be ...
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1answer
56 views
Finding Investors/partners to fulfill the following needs
You've probably heard this before, but I came up with the idea for great product and I developed it. I measured the demand for it personally, by demonstrating it to the target audience and got a ...
2
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2answers
83 views
Reassessing a 50/50 partnership, help appreciated
I decided to I wanted to franchise a retail business and a colleague said they wanted to see the business plan. They loved it and believed in the work I had put in a decided they wanted to go into ...
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2answers
73 views
Appropriate equity for marketing / development work?
Looking for a little guidance on an equity offer for a project I'm involved in.
I was approached six months ago by a founder-developer who has written software to accomplish an idea originated by a ...
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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 ...
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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 ...
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0answers
42 views
How much equity to give to the idea guy? [duplicate]
Here's the situation at hand.
I'm a designer, entrepreneur. I work with a lot of talented developers etc.
One of my non-technical buddies had an idea for an iOS app. He explained it to be through a ...
0
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2answers
96 views
Equity for Mentoring and guiding a startup
I am a first generation entrepreneur. I am going to start an ecommerce venture with two other co-founders. However, we have a group of people helping us with the development of our product. They are ...
1
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3answers
168 views
How much equity should I give up to the app developers?
I am in the process of designing a mobile app and i'm at the stage where I need to finalise the cost with the developers. They have sent me a quote which I believe to be quite high, however they have ...
0
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0answers
16 views
Dividing equity for a Management Buyout
I currently work as CTO and VP Engineering with a company that has offered to sell the company to the President. The president and I originally started this company that was acquired several years ...
0
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2answers
57 views
Anti-dilution 'downside' protection clause - are these ok?
For a start up is there a down side for a smaller owner to have an anti-dilution clause protecting the individuals downside (eg 'not to fall below 10%', for ex). If they're ok, what's the highest % ...
3
votes
2answers
107 views
What's an appropriate approach to finding a Digital Marketing “shepherd”
I'm the CTO of a SAAS startup oriented towards non-technical internet users in the 40-65 age demographic and we're preparing for our initial launch. Naturally, much of our conversation has shifted to ...
0
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0answers
60 views
Fair equity/cash for one year's contribution?
So I asked a broader question on this situation before, but am now trying to narrow it down to the core issue after negotiations failed yet again with my co-founders.
I am a tech guy who joined a ...
0
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1answer
72 views
Percentage allocation for my startup reasonable?
I've developed a new product that I am going to be selling and putting on the market. I had been planning on funding everything with my own personal savings. I have a friend (Mike) who believes in the ...
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1answer
146 views
How to negotiate for equity when joining a startup as one of the first employees?
I am looking to work at an early stage startup, and I am currently negotiating with founders of several such startups. All of these startups have just raised their first funding, and for each of them ...
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1answer
75 views
How much equity is normal for a programming VC to take for developing a mobile app?
I'm in the process of developing a mobile app for a niche industry B to C. We have an established brand in 17 countries (hard goods)and significant credibility in our industry. It's not, but as an ...
