Equity is the value of an ownership interest in a business.
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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
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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 ...
4
votes
5answers
324 views
How to handle partners asking to renegotiate old partnership agreements
In The beginning
Around one year ago we build a software company, we needed to quit our jobs, get financing, a product, legal work, accounting work, clients and partnerships with providers.
we ...
1
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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 ...
3
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2answers
139 views
What are some creative ways for a cash poor start up to compensate a designer?
We are in need of a designer for our start up, but we are pretty much cash poor. I have been talking to a designer for a few days, and he really wants to help as he loves our idea. He is very ...
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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 ...
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2answers
164 views
equity explained for a developer
I've seen job listings for developers that offer salary + equity. Can someone please explain equity with an example or two? What is the typically amount of equity for a developer? Is there any ...
2
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2answers
81 views
At what point can par value no longer be used with restricted stock?
I have a web site that I own restricted stock in. When I purchased the equity, all I had to pay was par value for the stock (.001 per share I believe). I'm now looking to receive more equity.
Should ...
1
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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. ...
2
votes
5answers
340 views
Is it common for people to work for free in exchange for equity in a startup?
My business partner and I have an idea that requires some web development to be done to get to the first stage of proving that the concept works. We do not want to pay to do this, but rather have ...
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2answers
164 views
How to split equity between founders
We have a very complex team and our actual roles and skills are known to each other only after we started working and deciding the equities which would be vested in few years. We started working from ...
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0answers
23 views
Dividing Equity Between Founders [duplicate]
Possible Duplicate:
Forming a new software startup, how do I allocate ownership fairly?
A good friend of mine and I have conceptualized and have been working on an idea for over a year. The ...
2
votes
1answer
53 views
equity for part-time project?
I have a side project that I work on part-time. Recently someone who is not technical had similar idea approached me and would like to work on the marketing side and help out on product design.
This ...
1
vote
0answers
72 views
Incubator Equity and Royalty?
I'm considering applying to a local incubator, and wanted some quick feedback regarding the following terms (assuming I get in). I've started by bootstrapping, and feel as though I need to dedicate ...
6
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2answers
449 views
Non-Founder CTO Equity?
Background:
I'm the co-founder for a 2 year old startup that is currently bootstrapping and solidly profitable (300k+ revenue this year).
When we hired our 3rd and 4th employees (COO and CTO ...
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 ...
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3answers
134 views
How to divide a property investment company / portfolio fairly
My brother and I would like to start a property investment company / portfolio. Buying run down houses, doing them up and then either selling them or renting. The big question is how to split this ...
1
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1answer
158 views
Equity distribution when taking investor / partner to develop a successful existing business
i am the sole shareholder of a well-established service business with 10-years of expertise and recognition in our industry locally.
We have an opportunity to grow by creating multiple new locations. ...
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0answers
45 views
Shareholder agreement to cover leaving employee's shares
we are currently setting up a shareholders agreement for three eqaual partners with 33 1/3 share each, however within 5 years one of the shareholders is up for retirement.
The original document ...
0
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1answer
59 views
Incentivizing crowdsourcing through stock/equity IOUs: 1 free share per submission
During its mission to raise popularity in the midst of the dot-com boom in '98, TravelZoo gave a few free shares to each person who signed up for their mailing list.
Hypothetically, let's say I'm ...
0
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1answer
44 views
Does having stock grant equal shareholder
Legally speaking, if a person has been issued a stock grant does it automatically make that person a shareholder?
Or does he need to be given a stock certificate?
What about options?
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3answers
962 views
Questions to ask CEO when interviewing at a startup
I've been through several rounds of technical (software developer) interviews at a start-up and have done pretty well. I've been invited back for the final round which will be with the CEO. I ...
1
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1answer
61 views
How to exercise Warrants when company is still privately held by the promoters?
Currently I am holding around 80,000 warrants of my previous U.S based product company. Still company is privately held by the promoters only and they do not have any plan for IPO in next 1-2 yrs. ...
3
votes
2answers
159 views
What to offer sales biz dev first hire / partner for product that has early sales traction?
Background:
I am a developer with a SaaS product that is bringing in revenue, but not enough to pay a sales person's salary (yet). The company shouldn't need outside funding. The product is ...
2
votes
2answers
142 views
When to commercialize a product?
I am a young university student with a good number of years experience in both small/large software companies. This has put me in a good position to find strong student developers and lead/consult for ...
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0answers
37 views
Shares to programmers [duplicate]
Possible Duplicate:
Forming a new software startup, how do I allocate ownership fairly?
So I friend of mine has this idea for a kind of social network based on video blogging, for obvious ...
2
votes
3answers
142 views
Unilateral equity investment by a founder
I am one of three founders (all part time) of a software start up which is still in early stages. Considerable effort has been logged even though no formal arrangements have been made. We have ...
3
votes
1answer
116 views
Equity equation as 3rd member of a startup
I was working for a startup as a remote contractor for couple of months.
The founders of the startups are non technical and I am the only one technical person into the team.
After working with the ...
1
vote
1answer
111 views
Startup equity for employee - real stock or option
For an earlier employee (not C level title), is it common to pay via option instead of real stock equity?
Assume both need to suffer from 4 year vesting schedule with 1 year cliff.
1
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3answers
123 views
Appropriate equity distribution for early stage startup? [duplicate]
Possible Duplicate:
Forming a new software startup, how do I allocate ownership fairly?
it's been pretty difficult for my team and I (as it is for everyone) to come up with equity numbers. ...
2
votes
1answer
146 views
Revoking a Partner's Equity
I am involved in a startup and one of our minority partners (owns 15%, vested 25% of that 15% with the rest over the next two years) is not meeting his side of the agreement.
I think we have the ...
0
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1answer
123 views
When one of three founders add a capital round alone, how should he be compensated? Note or Equity
We have a startup with 3 co-founders each having 33.3% of the company. So far we have raised 100k internally and split it 3 ways. Now we wanted to raise another 100k round internally. If one founders ...
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0answers
53 views
Equity % Ownership question for one entity under a parent entity
Situation: Ok here is the situation. I am in negotiations as a partner in the formation of a software start up company. My responsibilities are the development of a go to market strategy, sales and ...
2
votes
1answer
163 views
How should early employees be compensated if founders have left and the company has pivoted?
I realize that Joel Spoelsky has written an extensive summary of how equity should be allocated (namely, fairly), but I was wondering how things might differ in slightly different circumstances...
I ...
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2answers
222 views
Clawback vs. vesting
What is the difference between clawback and founder vesting? It seems that the term "clawback" was used in connection with the Zynga and Skype cases Equity Clawback - how to avoid Zynga situation
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0answers
129 views
What is expected cash and equity compensation at a series C start up?
I am looking at a leadership position on the International side of the business for a Series C start up valued at 1bn. The job has 1 person between the role and the C-level. Company is obviously well ...
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0answers
78 views
Conflict equity split
I'm a new enterpreneur. A month and a half ago I was approach by my partner. We did not know each other. He was looking for a partner. He was not from the country. He came with the idea (something ...
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vote
2answers
147 views
Can I give investors a cash return on their investments, instead of company equity?
I want to start a real estate renovation, redesign and buy-to-let company. I need 200k start up investment. I'm wondering whether or not I can simply offer each investor a 100% return on their ...
8
votes
2answers
599 views
Fired from startup, vested equity
I was recently terminated from a startup without cause, where I was one of several founders owning a decent percentage of stock. We also had an angel investor (incubator) in with us for a small ...
0
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0answers
29 views
How much equity for a graphic designer doing contract work? [duplicate]
Possible Duplicate:
A graphic designer working for equity
My business partner and I have been working on our project for a couple months. We are 50-50 co-founders both working full-time and ...
1
vote
4answers
322 views
How to share equity among early investors, CEO and product developers in a technology startup
We are planning for a software startup and following is our setup.
There are 4 people who came up with idea. But these people can NOT code and build a product.
These 4 people are also going to ...
0
votes
0answers
6 views
Equity preference and effort to be expended on a new startup [duplicate]
Possible Duplicate:
Forming a new software startup, how do I allocate ownership fairly?
I've recently been approached by someone who needs a partner for a new start-up which sounds really ...
1
vote
3answers
163 views
If I attend a hack-a-thon event to work on a prototype, how much ownership do I give up?
I was thinking about attending a hack-a-thon event to get help creating a prototype. I am a non technical founder and was told this route may be a good option. However, I just found out that you ...
2
votes
2answers
193 views
Primary founder has conflict of interest but wants to retain equity position without quitting day job?
I am the primary founder of my start up. We have just received our first influx of capital. My current employer feels working on this would be a conflict. The start up has a management team in place ...
3
votes
1answer
133 views
How to estimate value of non monetary and non working hours contributions?
Suppose a startup has 5 founders with the next contributions...
1: X hours of work in the startup.
2: A patent (the design of a product never produced).
3: $50K of funding.
4: Marketing skills.
5: ...
1
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1answer
131 views
Partnership - Investing time and not cash - What equity should I expect?
Hoping someone can comment or help.
I have been invited to join in partnership with two others to start a new company which is entirely there idea. I am not expected to make any cash investment.
...
1
vote
4answers
239 views
How to structure a startup with a small number of founders to avoid chance of 'paralysis' at some later point
Consider a startup with a small number of founders (lets imagine 2 to 4). At some point down the line a difference of opinion developed (such as market to target, or if to continue or fold) that can't ...
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 ...
15
votes
5answers
944 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 ...
