Equity is the value of an ownership interest in a business.
2
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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 ...
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. ...
1
vote
2answers
340 views
Startup Equity Distribution / Investor Equity
Thanks for taking time to read my post and sorry for the loaded questions -- please read patiently to help me. Here is the scenario:
Founder has the startup idea vetted 3.5 years ago -- but never ...
1
vote
2answers
144 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 ...
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 ...
0
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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 ...
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 ...
1
vote
2answers
410 views
How much equity should an active investor get in an early stage of a startup?
I'm the only executive, I have 100% of the shares, I have 4 employees.I built the prototype on my own and I'm almost launching.
This person has intense experience in tech but not as an investor. ...
3
votes
4answers
676 views
Equity for a part-time founder?
I'm a co-founder of a new startup with two other partners. I'm a designer and they are a developer and biz dev guy respectively. We are in the initial prototyping phase for the project and will be ...
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 ...
0
votes
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 ...
2
votes
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 ...
2
votes
3answers
552 views
What kind of equity should I be looking for? - Tech Startup
I am currently the Director of Engineering for a tech/website startup in NYC. I was hired in Nov 2010 after they obtained an angel investment of around 1 million dollars. I am the second tech hire.
I ...
1
vote
1answer
59 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. ...
7
votes
9answers
3k views
Is performance based equity vesting possible?
I'm willing to give 20% of my startup to my partner who has an MBA and good experience.
His main responsibility will be sales, marketing and deal making. I'm the developer.
I'm working full-time on ...
1
vote
2answers
174 views
As a stock holder, do I have the right to know how many stocks other investors have?
As a stock holder, do I have the right to know how many stocks other investors have? The company is not publicly traded yet, but I am having difficulty trusting that I have received my fair "share" ...
0
votes
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 ...
1
vote
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. ...
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.
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 ...
1
vote
4answers
777 views
Equity share for a 3rd member joining a small startup
I joined a small startup company roughly 1 year ago as the 3rd member of the company. At the time of joining, the company was roughly 6 months old; the company is contract work based and the 2 ...
1
vote
3answers
132 views
Product equity rather than company equity - any examples?
We're all familiar with the traditional shared equity arrangements in a startup; Some contribution = Some % of shares (thus equity) in the company, which may or may not payoff down the road at either ...
3
votes
2answers
2k views
What does it mean to give equity to a team member as compensation?
So i'm the founder and developer of a startup, when i add a guy to the company to serve as a sales man, and give him 10% of equity of the company without any salary.
Does it mean he'll receive 10% of ...
3
votes
2answers
372 views
What if the startup I work for gets bought out?
I am the technical founder of the startup that I work for. My software, that I architected, runs on a device that has won a Gold award even before the trade association's show.
The startup is ...
0
votes
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 ...
0
votes
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
0
votes
2answers
184 views
When to grant sweat equity to a non-employee/non-founder
My partner and I founded a start-up personal service business. We own A shares (voting) and are working full-time on the business. We have procured investors, who own B shares (non-voting). The ...
0
votes
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 ...
7
votes
2answers
3k views
What is the difference between Series A, Series B and Series C investment?
What is the difference between Series A, Series B and Series C investment for a startup?
How does this affect salary and/or equity expectations if I am looking to join a startup in a ...
0
votes
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 ...
0
votes
1answer
98 views
Best Structure for Investor Buyout
The company I'm an investor in requires a significant capital infusion, and is trying to find a structure to remove several current investors who are not participating in daily operations of company - ...
3
votes
3answers
1k views
What is founder's stock?
What does it mean when a consultant ask for founders stock in a pre-funded startup for payment? Is it a special class of stock? Is it non-dilutible?
1
vote
1answer
120 views
advice for clothing line startup
50,000 usd as an investor. They will have no roles in the company as far as management anything else. I will be doing all the leg work. I have the copyrights and trademark for the logo and name of the ...
3
votes
3answers
292 views
Advise on profit share for freelancing startup company
Three of us want to create a freelancing company and work via most popular freelancing sites nowadays. We've been working like this for 2 years and we need more people to help us.
I see many such ...
8
votes
2answers
598 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
votes
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 ...
15
votes
5answers
941 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 ...
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
3answers
193 views
equity investor exit strategy
An equity investor is investing $1000 for a period of 5 years, equity share holding percentage 80% & my percentage 20%.
In a normal scenario, when does an investor exit?
The moment he gets his ...
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
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 ...
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 ...
4
votes
5answers
2k views
How should a developer determine their stake in an early startup?
I am a developer that has been asked to take part in an early stage startup (no investors yet other than the principals themselves). There is some code in place for the product and I would be working ...
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
132 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
vote
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.
...
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 ...
0
votes
3answers
140 views
Is it legal to work for equity on a J-1 visa?
I'm currently on a J-1 visa and I understand that I'm not allowed to be paid by any company or organization other than my sponsoring organization. However, is it legal for me to 'work' for a potential ...
