Equity is the value of an ownership interest in a business.
4
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8answers
1k views
Splitting Equity amongst co-founders (odd situation)
I know this question has been asked, but I have an odd situation.
My web based startup was incubated out of a late stage startup. We'd been running for over a year, with a solid business model, ...
2
votes
2answers
2k views
Equity for unfunded, pre-launch startup as Business Development lead?
I left my job to join an early stage startup at its absolute infancy. I came on board immediately in a biz dev role and am one of only two full-time employees. The other is the actual CEO, the 3rd ...
2
votes
1answer
242 views
Amount of equity given from pre- and post-valuation?
If I know a startup has a valuation of $X million pre-money, received $Y million from VC and is now evaluated at $X+Y millions, how much percentage of the company were given to the VC?
And if, say, ...
3
votes
2answers
2k views
Is it typical to trade salary for equity when joining a startup?
Suppose I got an offer from a startup that currently has funding to start hiring employees. Suppose they are offering a $100K total compensation package, such that I can choose to take a reduced ...
0
votes
1answer
456 views
Sample contract for vested equity for 4 years in a Hong Kong company
I'm going to join a company as a late cofounder and after negotiation will receive a significant percentage of equity vested every months over 4 years and a small salary. The company is based in Hong ...
4
votes
2answers
413 views
How the 1.5 factor in Paul Graham's equity equation is obtained?
In "The Equity Equation" essay
http://www.paulgraham.com/equity.html
Paul Graham says...
"If your valuation grows 3x a year, the total cost in stock of a new hire's salary and overhead is 1.5 years' ...
7
votes
3answers
4k views
Looking to get involved with a startup, but no idea on what kind of salary/equity I should expect
I'm considering joining a startup that has raised a few million in Series A funding and I'd be the second developer joining the team. I've been out of college for 4 years and am looking for a senior ...
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 ...
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vote
3answers
380 views
Please help with a VC / startup deal / seed money
I and my friend are about to get a deal to fund our B plan. This plan aligns with the expansion plans of the funding company. The deal offered is that of partnership in which we two would be having a ...
5
votes
4answers
429 views
Is there anything I have to do to maintain my equity after leaving a startup?
I left a startup recently and had equity that vested (about 1/5 of a percent).
I have a signed contract to this effect.
As the parting wasn't necessarily the most amicable, is there anything I ...
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 ...
2
votes
3answers
210 views
Does equity equal liability?
I have been offered some equity in a startup and I was wondering if I own X% equity (I own X% of the company) does that mean I'm also X% liable should the company be sued? Do I own/am responsible for ...
0
votes
5answers
209 views
Identified a problem, me and a friend came up with a solution, moved apart (cross country), I continued working on the project, he did not
I moved abroad for 6 months and one day me and my roommate identified a problem and came up with an idea for the solution. I thought it was brilliant and immediately started brainstorming, we checked ...
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?
2
votes
3answers
998 views
Amount of vesting equity for #3-#4 employee?
Given a startup with 2 founders (one technical and one not-so) that's received VC funding (few millions).
How much vesting equity (%) should the next couple of developers recruited expect?
I've ...
1
vote
2answers
3k views
Startup CFO contract / stock compensation?
I am looking for a sample contract for a CFO position in a startup company. Also, What is an appropriate amount of compensation to give a CFO in terms of stock.
Thanks!
7
votes
6answers
527 views
I'm declining investment offers. Am I doing it wrong?
I'm about to launch my web based business, and several friends/relatives offered to invest small amounts of money(5-10k) for a few percentages (1-5%) of my company. It's a side business for me as I'm ...
4
votes
3answers
350 views
Co-founder quarterly equity issuance
Is it a good idea to issue shares on a regular basis (say quarterly) to all co-founders based on performance/value/etc.?
I've read a bunch of blog posts and questions here about equity split but none ...
11
votes
6answers
1k views
How to reward early employees?
In many startups there are some #1 or #2 employees who helped the whole business all the way.
I've got couple guys like that, I'd love to give them more than the salary (even though our salaries are ...
3
votes
5answers
1k views
Startup Advice — Attracting “Unpaid” Talent
A partner and myself are developing a new software product. We've been working on it for several months now but we lack certain areas of expertise -- in particular art skills. Everything has been ...
2
votes
1answer
1k views
Appointing a CEO - KPIs and what to expect from them year 1 and beyond
We are just moving into the realms of appointing a CEO and are unsure of what we should expect from a CEO We have never done this before and are very green in this particular area.
I know we have a ...
8
votes
9answers
2k views
How to resolve conflicts on a 50/50 startup?
We are going to found a startup with equal shares.
One as the product/tech partner being the other the marketing/sales partner.
We are going to found on a 50% equal shares. Not 51/49. Just 50/50.
...
3
votes
3answers
469 views
Alternatives to raising capital without giving up equity
I am from India - Bombay and have started this trading business of Cast Iron Brackets which is used to fix up wall hung commodes in bathroom/toilets, urinal commodes and wash basins alike.
It's been ...
2
votes
1answer
80 views
Seeking sales and marketing stakeholder
StreamingCulture, a venture that I am involved with is looking for a stakeholder with sales and marketing experience. Our mission is to help nonprofit institutions (focusing for now on performing arts ...
3
votes
1answer
75 views
Selling a website developed under my corp, but with a partner
I started an S Corporation for my own business (software contracting and various SaaS products). A friend approached me with a viable idea so we built another application together. They are not an ...
2
votes
1answer
310 views
Raising money from friends and colleagues - terms and %
I wish to seed my new business with about $120k, of which I need to raise about $90k.
I prefer not to go professional seed investors as:
(a) it could take some time (which I don't have);
(b) it may ...
0
votes
3answers
237 views
Equity Range to Give Consultant Building “Intriguing Idea”?
Am in the process of getting quotes on an idea and am negotiating with a web dev/design shop about the possibility of giving them some equity. They are willing to slash the total project cost from 6k ...
5
votes
2answers
812 views
Stock Splits for founders
I know this has been addressed. However, each set-up is different and I want to proved the particulars on this one to get some thoughts.
I need some help establishing an equitable Cap. Table. My ...
0
votes
3answers
223 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 ...
6
votes
3answers
1k views
Giving Equity to a Sr. Employee
I'm running a company from the last 10 years. Now I have hired a senior person to head the finance of the company as my knowledge in the finance is nil.He has asked for 6 % equity stake in the company ...
0
votes
2answers
552 views
Single Founder Vesting?
Does it make sense to sign a vesting restriction for myself, if I'm a single founder of my company?
3
votes
2answers
817 views
Examples of reasonable equity split for sales mgr
I co-founded a BtoB technology startup about 2 years ago with one partner. In the first 1.5 years we
Quit our corporate jobs and worked (mostly) full time
Completed the majority of technical ...
2
votes
1answer
704 views
What % should I give my business partner
Good day,
My wife and I are starting a restaurant and bar seach website for our city. Developing the web site would cost about 8-10k.
We got a partnership offer from a computer company. They would ...
3
votes
4answers
507 views
Startup organization before incorporation
I'm beginning a startup at my school. Right now its just me doing all the work, but i am gathering a team that will ideally be my co-founders. I wont be incorporating any time soon, but i will be ...
4
votes
3answers
5k views
Can non-dilutable stock (or equivalent) be issued?
I think I understand stock dilution (and I know in quite some cases it's not bad to get diluted) but I was wondering (it's mostly curiosity but I still think it's an interesting question for ...
234
votes
7answers
138k views
Forming a new software startup, how do I allocate ownership fairly?
I have come up with an idea for a new social networking application. It's not something I expect to be hugely successful, but I think it does have some potential. I've approached a few close friends ...
8
votes
8answers
2k views
What would be a fair equity distribution between me and my co-founder?
Me (software developer) and my co-founder (UI designer) are looking forward to build a SaaS startup. I would usually lean towards a 50/50 distribution, but in this particular scenario, the ...
5
votes
2answers
1k views
Minority Partner
I've decided to take on a minority partner for my startup. This individual will have a 25% stake in the business and I will retain 75% as the founder. My partner will not be putting up any money, ...
8
votes
9answers
487 views
Should money prevent me from starting a company
I am a 40 year old software developer in the finance industry. Since my 20's my I have a pattern of working for a few years to build up the bank account, and the pursuing some entrepreneurial venture. ...
9
votes
8answers
1k views
How to best resolve current problems in my multiple-founder startup
I've been voraciously reading about startups for the last week, this site included. Unfortunately, I've come to the conclusion that the equity structure of our startup needs to change and I would ...
9
votes
11answers
3k views
What's a reasonable amount of equity to retain when you're the key founder?
I'm working with two other partners to get a SaaS startup off the ground. I worked on this thing slowly, mostly on my own, for about two years before approaching my partners. As a background, I knew ...
0
votes
1answer
192 views
Hourly Rate to Stock Option Conversion
Assume that you are working for a startup on hourly rate basis (let's assume x dollars per hour) right from the start. Now, after y month, the stack holder offers you equity in exchange of hourly ...
0
votes
2answers
472 views
Equity proposal for investor
Say I have a brilliant idea for a startup, and need to raise $5mn from private investors.
I have a BP that shows that in 5yrs investors can have a 20% return per year, after i took out my share of the ...
5
votes
5answers
3k views
Sample milestones for co-founder value-contributed equity distribution
Question:
What are some sample milestones/goals to set for co-founders to allow them to gain equity for contributing value to the company, like a vesting-based equity plan.
Backdrop:
Let's say ...
2
votes
4answers
126 views
Escalating Ownership in Product Development Firm
A friend of mine has asked me to come on board with him, full time, as a business development consultant. Specifically, he needs me to produce market assessments for his portfolio of product ideas (9 ...
1
vote
3answers
335 views
Taking on a partner/dev lead
I am in the process of developing a website focused on the travel industry. It's a unique idea that I feel "has legs", and I've gotten very positive feedback from some close associates who have ...
6
votes
8answers
6k views
Equity distribution amongst startup co-founders
I read some articles about Startup Equity Distribution:
Here is one of them: http://blog.weatherby.net/2008/10/startup-equity-distribution.html
They give good insight, but still I couldn't use the ...
2
votes
4answers
392 views
“Active chairman” and equity question to the experienced
My startup is in the application management and cloud computing segment, I have recently been approached by a very well known person in the industry (I know he is known, also know him from past lives ...
3
votes
5answers
236 views
Which type of business to form?
I'm currently starting up a small business with two other partners who are very trustful friends. The business is mostly software, along with one small piece of hardware. We've talked about the ...
1
vote
2answers
217 views
Legal and tax ramifications of restructuring equity
My startup took some small seed funding with a decent valuation last year. Since then, one of the co-founders has removed himself so we need to reflect that in the operating agreement and transfer ...
