1
vote
4answers
40 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 ...
1
vote
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?
0
votes
2answers
122 views

Should I give an investor equity for a short term investment?

We are not so much a start up company; been doing business for over 7 years and started off with an investor which was considered a loan with interest. Now we are up to receive anywhere from ...
15
votes
5answers
945 views

Losing Controlling Interest in a company, can that be bad?

Basically I have been lucky to get spotted by some angel investors and will be signing £60,000 for 60% of my current business come thursday, which will really boost my start-up massively and ...
2
votes
1answer
290 views

Questions around vesting vis-a-vis dilution, leaving a company and being fired from a company

I am just curious about vesting as against 3 things - Dilution, a Co-founder leaving, a co-founder getting fired Please assume a 2-man team with the equity split among the founder & CEO (A) and ...
2
votes
3answers
222 views

How to split ownership <promise a long but interesting case-study here> in a startup with a scenario like the one below?

All, This is a case with a friend of mine who is a first-gen entrepreneur and close to cutting a deal with Angels for a funding of $400K. But before I ask you his question, here is the situation, ...
2
votes
2answers
281 views

Fair equity in this scenario?

I'm looking for opinions on what you would expect the equity distribution to be in this scenario: Person #1: Came up with the idea, left his job 1 year ago & went unpaid for 6 months, filed ...
1
vote
3answers
978 views

How much equity to share with a seed investor, who wants to offer the money as a loan to the company?

I found an investor, who is ready to invest seed capital ( about $ 100,000 )into the company. But she wants to invest it, in the form of a Loan ( payable back with an interest rate slightly better ...
2
votes
2answers
748 views

Founder stocks and Employee pool

Is it common to issue equity to CEO as Preferred stock but other co-founders as Common stock? When setting up a 20% employee pool, it is common to have terms that the unissued equity will be issued ...
0
votes
1answer
200 views

Popularity of restricted stock?

Several newbie questions for restricted stocks... Is it common for seed fund to invest in restricted stock? Is it common to issue restricted stock to cofounder? Is it common to turn option to ...
6
votes
2answers
189 views

My sales person (independent, not employee) wants to be an angel investor

I started a surveillance technology company in May 2010. Since the beginning, we have been working with a person that has been in the security industry for quite a while. He was providing some input, ...
2
votes
1answer
221 views

Structuing Equity Sale in Early Tech Startup

I have a few Angel investors, and a meeting next week with serveral VCs (brought to the table by the primary Angel), and I am trying to put together the equity sale package to present to everyone (VCs ...
6
votes
3answers
744 views

25% for angel investor for 20k$

These days I am in process of raising 20k$ for my project (a facebook application), that requires at least 30k$ (10k of which I am able to come up with myself). When negotiating with an angel investor ...
3
votes
8answers
537 views

Maximum number of angel investors?

What is the maximum number of angel investors you could possibly (not theoretically, but realistically) bring in to finance your startup (given you have traction and exciting potential)? I'm ...
0
votes
2answers
2k views

Minimum amount of equity angel investors expect?

What is the minimum (not theoretical, but realistic) equity stake an angel investor will be looking for in a new tech startup? Is it practical to offer equity in 1% denominations? Ex: give up 1% ...
1
vote
2answers
651 views

What is a reasonable percentage of equity

What is a reasonable percentage of equity that I should expect to give up to an angel investor in exchange for their investment?
2
votes
2answers
256 views

How to approach potential advisors? (who are famous)

I have a couple of people I would just love to have as startup advisors, but not sure how to approach them. One in particular has greatly impacted my startup and gave tons of solid ideas on how to ...
3
votes
3answers
320 views

Invester Gets Equity for Money to Pay Developer for MVP VS. Developer gets Equity for MVP

We started our business back in July 2009 with the intentions of building websites, consulting, internet marketing, etc. Now we have changed our focus to developing a SaaS solution for a ...
0
votes
2answers
1k views

How much equity in exchange for angel money?

I am not sure what the going rate is for angel money in the software space is it 100k for 10% equity?
0
votes
3answers
225 views

If one of your close acquaintances asks for some money from you, without a timeline or guarantee of returning it, how much would you cough up?

A close friend (or a mere acquaintance) of yours approaches you. States that he/she is badly in need of some money. And you oblige. In the back of your mind you know that the money would be returned ...