Equity is the value of an ownership interest in a business.
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2answers
304 views
Should I take royalties or a stake in a startup in return for writing software for them?
This is my first visit here, so hi.
I have been asked to write some software for a startup which has an exciting plan. All options are open and in the first instance about 6 months of work is ...
0
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2answers
49 views
How to negotiate for know-how or advice
in the past month I've been formulating a new startup idea in my head. It's not something technologically advanced that can't be made by me and my team but it belongs in the health industry and I will ...
2
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3answers
455 views
How To Structure A Partnership
First I must say, this site is quite impressive. I found it while researching partnership agreements. That being said, I am nearing a fairly important conversation with my current partner to discuss ...
2
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3answers
111 views
Unorthodox Startup Formation
Two other founders and I are planning to start an S-class tech firm. All of us have a government background and are new to the process: one founder is the notional CFO and has thus far handled the ...
1
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2answers
316 views
Am I a cofounder and how many equity shares should I take?
An engineer creates a product with most fundamental functions and is almost ready to establish a new company. He wants me to be in charge of the marketing for the new company/product. For now, only he ...
0
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1answer
69 views
Being paid in equity. Can my poor credit rating negatively affect the business?
I'm a web developer, and I've been offered (in addition to cash) equity in the new business that will be based largely on the application I'm being hired to build.
As someone who has been scraping by ...
0
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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
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0answers
188 views
As an Early Employee | Equity vs ESOP? and how much?
I have been working in a startup for quite some time now. Recently they have raised seed capital so now going to formalize stuff. They have given me an option to choose between Equity or ESOPs.
I am ...
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1answer
77 views
How to incentivise current employer in future startup?
I am currently employed by a company whose core business is not IT-related but I have developed a few applications that are central to some crucial business processes and I want to create a startup ...
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0answers
139 views
Vesting for large group of part-time cofounders
I am involved with a startup that has a very unique structure. We started as friends, all working in our spare time, never intending for it to become a business. Eventually, it started catching on and ...
2
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2answers
214 views
Investor want high stake and I need money
I love startups but have no prior startup experience. Till now I have only built stuff like mobile apps (as part time gigs) and worked as a consultant for many large enterprises. I have this new idea ...
0
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1answer
193 views
Existing startup new co-founder equity
I have been building a SAAS product for a vertical industry for the last two years. The product is now pretty mature. As a geek my sales and marketing skills are pretty rubbish so am are looking at ...
0
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2answers
166 views
Need advice on dividing ownership and profits
i'm starting an LLC with a close friend. we're making mobile apps. i'm the developer, he's the graphics guy. we plan to make and sell several different apps. i'll be working full time on this company, ...
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4answers
391 views
How much equity should a founding engineer get?
I know similar questions have been asked before but I feel this situation is unique. I would appreciate any help.
Three founders in total
Only one (me) will be building the product
The other two ...
8
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4answers
1k views
How to approach 51/49 partnership offer
A good friend of mine has a great idea for a project. He has more experience than I have, far more connections, and some awesome skill. He has some ideas on building tools for some major corporations, ...
0
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0answers
48 views
equity arrangement for “Proof of Concept” before going to VC
Q.1
What value would - $100k cash investment by founders, resource time and development of IT and IP in testing proof of concept, and securing $100k revenue from testing PoC - equate to prospective ...
2
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1answer
155 views
How much equity does Extreme Startups usually request in exchange for participating in their program?
Do Extreme Startups publicize this information, or has anyone gone through their program and have a ballpark figure?
3
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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 ...
1
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1answer
101 views
Equity when joining an established business
Given an offer to join an established company, earning at least a couple of million a year in revenue (under 10 employees) and which is a subsidiary to a multi billion dollar parent company; what is a ...
0
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1answer
158 views
Equity sharing with new cofounder
I contracted the development of a prototype for my web app. The developing company liked the idea, so rather than paying them cash in full, they agreed to a reduced price in exchange for 20% of the ...
4
votes
2answers
222 views
Co-founder with non-voting shares
I have an offer on a table to join this really exciting venture at 50/50 split as a tech co-founder but the original founder insists on issuing me non-voting shares. He worries that he will loose ...
1
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2answers
110 views
How to value a Project Manager versus actual Technical/Engineering talent?
I have relatively little experience with recruiting, determining compensation and hiring for startups since this is my first go at it. My approach is that there isn't a single right answer on valuing ...
1
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1answer
381 views
How much equity should I give for contracted labor?
I am the sole founder of a bootstrapped startup (idea conceived by me, revenue model and business plan developed by me, and I filed a provisional process patent for the concept). I have incoporated ...
0
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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 ...
4
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3answers
499 views
Co-founder leaving startup, how should we set equity?
Here's the scenario my startup is in and I'd appreciate some thoughts on how to solve several issues we have.
We're 3 co-founders (2 biz, 1 dev) and we've been working on an idea for the past ~12 ...
3
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2answers
425 views
What questions to ask when interviewing for a startup offering equity
I'm interviewing for a Lead Developer role in a company that is asking me to take a cut in salary in exchange for a share of equity over 3 year period.
I'm not necessarily opposed to the idea, but I ...
0
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0answers
95 views
Taking lesser salary and work in a start-up
I am in the process of negotiating with my former boss that went out and did his own software start-up. Everything has been set-up and the product is there. Currently has stable clients but the ...
2
votes
1answer
104 views
Project building a product for a startup — equity or % of revenue?
I am a Rails developer with a job who does projects on the side. I've been asked by a couple of friends to build a product for their startup, nothing too special/creative technology wise. They don't ...
-1
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2answers
148 views
Equity splits for new company are threatening to tear it apart before it gets off the ground
hope to get a few outside opinions here.
The cast of the saga:
"M" - the "idea person", has experience, has (or will have) money from property in near future, unemployed at present
"B" - A ...
1
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3answers
67 views
Profit Share with Customers
Has anyone here ever tried giving a share of company profits to regular clients? We are thinking of allocating about 30% of after tax profits to a pool in which our regular customers share. The payout ...
1
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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 ...
1
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2answers
349 views
Formula to evaluate the earnings potential when joining a startup
I'm trying to come up with a rough formula to help decide if I should join a startup. I'd like to weigh my current pay vs joining a startup, taking into account opportunity costs and possible final ...
0
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1answer
88 views
Alternatives to equity for a strategic partner
I want to approach a former colleague to be a strategic partner on a software project. He would be bringing key skills to the table that I frankly can't afford to pay an employee for. I was ...
-1
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1answer
321 views
Paying App developers in equity?
I am starting a software company. We will start with one service in particular, but will expand from there. My question is, is it reasonable to pay developers in equity alone? Also, seperate question, ...
0
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3answers
114 views
'Startup' enterprise software application, question about ownership between investors and developers
Over the past four years, my business partner and I founded a company that is planning on selling B2B software. We have been paying the developers to create the software, thus keeping full ownership. ...
0
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0answers
143 views
Thoughts on equity split [duplicate]
Possible Duplicate:
Forming a new software startup, how do I allocate ownership fairly?
I'd appreciate your thoughts on this situation:
I am a developer that has worked on a on 2 products ...
3
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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
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2answers
256 views
0.5% equity and 2k/month to be the #1 CDO in a startup
I really need your help.
It 's the first time I've been asked to work for a startup.
The company has already been made, founded by 2 partners, and has already received an initial investment, but has ...
2
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2answers
400 views
What is a fair equity offer when there is no salary?
A professional colleague/friend of mine is putting together a product that is in demand from Educators and students and has asked me to join in - he has funded the wireframing of the online venture ...
1
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1answer
257 views
How can the co-founders equity (economic and control) be protected by being diluted in excess?
How can the co-founders that hold a minority of the shares be protected against:
A dilution of his equity (economic and control) triggered by the shareholders that hold a majority of the shares?
A ...
8
votes
9answers
2k views
Co-founder wants to leave, do I pay him back the money he invested into the business?
My co-founder and I have been working on a business idea. We both invested money into getting it to a MVP stage, but it hasn't been launched and does not make any money. (It is basically a modified ...
2
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2answers
611 views
Co-Founder or First Employee ? How much equity?
Joined together to create a new venture with my ex-boss, we shared a great work dynamics and gelled well together, had complimentary skills & liked the idea and hence I decided to start together.
...
0
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0answers
56 views
Looking for specific suggestion regarding company shares [duplicate]
Possible Duplicate:
Forming a new software startup, how do I allocate ownership fairly?
I just want to say that I've read a lot of threads regarding this subject, including the most popular ...
5
votes
2answers
193 views
Having less equity than an investor
Suppose a company (C-Corp, Delaware) with 5 co-founders, each having 20% of the shares.
Then an investor wants 30% of the company, which will leave each co-founder diluted to 14%.
Besides control ...
1
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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. ...
0
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3answers
143 views
Founder Shares for new venture - when one founder is only an advisor?
I am starting a new company with a long friend. He had the original idea but we both developed the idea and spent approx equal amount of funds to get it to the state of developing and launching with ...
0
votes
2answers
449 views
Startup equity share among co-founders: What is the fair thing to do
In a startup company, there are 4 people involved, and all of them work on a sweat equity basis. Here are the people and their role:
Person #1: Helped shape the idea with person #2. One of the two ...
2
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1answer
151 views
What do kickstarters want in return?
I was looking at kickstarter to get some funding for a possible business venture. Kickstarter funding would cover entity filing fees and other costs or licenses and materials.
I have seen some ...
0
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1answer
231 views
New business with three partners, one has the credit, one has the time, one has the product
We are looking to start up a business and are in a different situation then I have been in before. I will be looking at financing the money that starts the business.
I have one partner that will be ...
-1
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1answer
106 views
as one of the co-founders, can i have an equity and profit share both in mother holding corporation and subsidiary holding corporation?
the funders for my projects plan to put up a holding corporation. this holding corporation is intended to fund feasible projects by various project proponents not only those projects by me but ...
