Equity is the value of an ownership interest in a business.
0
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2answers
548 views
Lead developer with competitive salary. How much equity?
we have been in business for few years,
we have a product (software) that is being refined every day,
we have a small team
we have paying customers.
we are profitable.
Our lead developer, which ...
1
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2answers
440 views
I'm a part-time founder working with two full time partners. What is an appropriate equity share?
This is an update to a question I posted a few weeks ago.
Help would be GREATLY appreciated.
I'm a co-founder of a new startup with two other partners. We are just hammering out terms (equity share, ...
2
votes
1answer
143 views
Equity redistribution after team shake up, product pivot
I joined a year old startup as employee #2. There were 3 cofounders and 2 part time employees as well, so 7 people at the peak. I got accustomed to the team, product and business during a long mutual ...
-2
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1answer
123 views
pure equity compesation
I hired a full time person with equity-only compensation. The higher-than-usual rate reflects that. However the contract was not professionally written as it only mentions the equity part. Can that ...
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1answer
352 views
How much startup equity should be provided to an early, senior engineer?
pre-funding start-up in tech.
founder had idea and filed patent (pending); developed concept, small cash funding, etc.
engineer came in year later to help shape app; code proof of concept, help with ...
1
vote
1answer
199 views
Where can I find detailed information about a company's stock structure prior to their IPO?
I'm curious to know about the stock structures of a lot of companies. For example Marc Pincus of Zynga has preferred stock, where each of his share's voting power is 70x greater than those that are ...
0
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2answers
76 views
Equity, Loans and Allocations
In an LLC, distributions need not be related to ownership shares. However, our operating agreement states that positive distributions (gains) will be based upon ownership share.
Here is my question. ...
0
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3answers
161 views
Fair equity split be in this situation?
I have been working on my startup for the last few months, where the idea and market research has been done by me, few months before. I have a working demo I developed with freelancers based on my ...
10
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6answers
2k views
Joining a startup within its first year - salary/equity expectations?
I've recently been headhunted by a startup a year old which I am very interested in leaving my current position in a large established business in the same industry for.
There are a number of people ...
1
vote
4answers
273 views
How to divide equity among 6 founders when you desire to also get VC funding
I am looking to create a company with 6 founders. Reason being...I need them all and they are all genius. Because they are all already highly compensated at great companies, equity will be my only ...
4
votes
4answers
148 views
Need to form company now, but want to make ownership / equity distribution decisions later
(background - few startups, business side)
This is a situation that I've encountered a few times before. Seems not uncommon among startups.
You're kicking around an idea - let's say there are 2-3 ...
3
votes
4answers
685 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 ...
1
vote
2answers
119 views
What assurance can I have in case a startup fails?
I am a coder and have very little in-depth business knowledge. I was recently approached about joining a very promising startup with a great idea. Only problem is that they were unfunded and would ...
0
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1answer
125 views
Inputs on partnership startup
I am planning to work as a partner in a startup along with my friend. Since he is a critical resource so he is taking a major chunk of the equity and holds the decision making power. I being a part ...
1
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1answer
88 views
How can this be an equal partnership?
I have a business.I met someone for a completely different reason, but we got along so well and we eventually started talking about starting another business (like the one I already have,but as ...
1
vote
2answers
173 views
Who prepares the cap table for a startup seeking financing?
Just curious: for the startups here, who prepared your cap table--the Excel spreadsheet showing ownership of your equity, and reflecting conversions of debt, future financings, etc.?
You (your ...
2
votes
1answer
148 views
Where to post job for early stage startup
We are bootstrapping and offering equity. We're seeking a front end developer.
We posted on startuply.com but are looking for other places. We used one location on craigslist. Anywhere else we should ...
3
votes
1answer
990 views
What's a good ratio between founder equity and early employee equity?
I'm looking into the equity for the 2nd employee of an early-stage startup. I've seen lots of rules of thumbs out there (some people say 1%) but it's hard to apply because some rules of thumb refer ...
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1answer
44 views
Need help structuring equity for well qualified partner wannabes
I know there have been related posts to this question which I've already read, but can someone please help me specifically with this?
We found some high profile techies/developers in a neighboring ...
4
votes
1answer
107 views
Can an owner give some of his equity back to the company so that it can be used to raise more money?
If an owner has 50% of the company, and the remaining 50% is spoken for by friends and family, is it possible for the owner to "voluntarily" give some of his equity back to the company (at no charge) ...
0
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1answer
160 views
who can qualify to be a co-founder?
I am working on my project full-time w/o income for a while, now it's getting to the end and I need someone with marketing experience to on board and help out, and a technical guy for final ...
1
vote
1answer
661 views
Compensation in a well-funded pre-series A startup in Silicon Valley
I have had a favorable (and rigorous) interview process at a pre-series A startup (12 months old) that has a solid product, a very good team and excellent market traction. They have raised around ...
1
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1answer
260 views
how much ownership or equity percentage should be given to co-founder?
For a cofounder who has separate full-time job, has no other investment to my startup except some time or effort on few projects/items that are needed. W/o no salary, how much of the ownership/equity ...
3
votes
2answers
179 views
What are reasonable precautions to protect my equity?
I'm taking part in a startup where I'll be developing and maintaining the web site and my two other partners are handling the business aspects. I was brought into the startup at a later point, so I'm ...
0
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2answers
101 views
Should I handover software copy to new partners
I live in UAE and I've built a web portal all by myself. I have been looking for a partner to kick start the product. I've been contacted by 2 guys from Canada who would like to run product there. One ...
3
votes
5answers
271 views
What is the best way to adjust options?
Me and my partner are about to start a new startup. I'm much more financially prepared than he is so we've agreed on the following structure.
I would fund the company with half a million for the ...
1
vote
1answer
2k views
How much equity should I give these people?
We're two co founders, I'm the tech, he is the business end.
We want to bring on a graphic designer (since the stuff we've gotten 2/3 times on Guru.com was awful). We currently have begun raising ...
2
votes
2answers
131 views
What is the compensation for time/technical expertise other than equity in a start-up?
I am an Audiologist and have started a couple of clinics with a friend. He already owns a full-time clinic and now we have started two visiting sites of that permanent site. I have left my job and ...
4
votes
2answers
628 views
Allocating equity - equal cash investment - unequal time investment
I am getting involved in a small start up - we have been discussing (3 partners) this for a few months and now is time to get everything settled.
We originally discussed a certain time allocation 4 ...
0
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1answer
101 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 - ...
1
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1answer
58 views
Granted but unpurchased shares during acquisition
What happens to shares that are granted but not purchased during an acquisition? And the grantee is unreachable.
2
votes
4answers
1k views
How to take a draw in a multi-member LLC?
My business partner and I are forming an LLC. As I understand, members of an LLC are not employees and therefore are not on payroll. Instead they pay themselves by taking a draw from the LLC funds.
...
1
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1answer
117 views
How to financially become a part of a start-up company?
I am doing contract work for a start-up company and the founder is thinking of hiring me as an employee (actually as the first employee). I am also willing to work for this start-up company, however ...
0
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1answer
204 views
Paying with equity: how much to share?
Yet another equity sharing question, because I couldn't find a similar one that matches my exact scenario.
So I have this start-up, and my product is already live, getting great reviews, media ...
3
votes
1answer
227 views
How much equity to offer for part-time help?
I worked on a web site idea for the last 1 1/2 years, created the prototype, have spent money incorporating and other legal stuff, etc., etc. Now, to launch I need help, thus started talking with ...
2
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1answer
261 views
Getting Paid in Equity - what is the simplest way to structure payment for consulting work in equity?
I'm opening a small start-up consulting business and would prefer to be paid in equity. It's unusual, I know, but it's my preference.
What is the simplest way to structure an equity-pay transaction ...
3
votes
3answers
325 views
Minimum wage laws and startups?
As a technical person, you see this a lot:
"I've got this great idea to be the next $BIG_SITE. I need you to build a site for me - it should only take 3 months or so. Meanwhile, you can crash on my ...
2
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1answer
295 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 ...
1
vote
2answers
98 views
Income generating firm wants to expand, how to split shares with new comers?
My husband and I own a company which we started 3 years ago. We have two employees currently. In order to grow and expand, we know two of us are not enough to create and build a more profitable ...
2
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3answers
225 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, ...
1
vote
2answers
361 views
How to split up LLC ownership?
My friend and I are planning on forming an LLC around some services we are providing.
I am working fulltime on our services and started the initial work 6 months in advance
My partner has a fulltime ...
2
votes
1answer
162 views
Giving Equity to an Incubator
A new incubator has shown interest in my startup idea and are asking for 7% equity.
As this is the first time someone has asked for equity from me I'm not sure what exactly this entails.
Does this ...
5
votes
3answers
135 views
Can I offer stocks to an employee before being incorporated?
We are a startup but not incorporated yet. We have someone who is interested in working part-time for equity. Is it ok to give him offer letter and offer some stocks which vests over 4 years?
Does ...
3
votes
3answers
319 views
What is the best way to structure an equity and cash compensation package for a consulting firm?
We are a consulting company that builds web and mobile apps for our clients. We have been asked if we accept some portion of compensation in equity. We do actually want to for some of our clients, but ...
0
votes
2answers
175 views
Event of a sale prior to vesting schedule completion
Starting to work with our legal team and its time to expand the team. A few questions on the vesting schedule.
Employee 1: CFO position
I am bringing in a CFO from a financial background with other ...
-1
votes
2answers
209 views
What title to give to a non-founder first person in company
This question is a follow up to another question but it stands as a question by itself so i decided to ask it separately..
i am a single-founder starting a company and hence looking for ...
1
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1answer
136 views
How should we allocate shares given staggered involvement?
I have an idea I'd like to implement. I've done a bit of work to get together a proof of concept and it works pretty well. I think the potential is great, so much so that I've become a bit obsessed ...
1
vote
2answers
128 views
Dealing with passive “partner” in directive position
I'm somewhat of in a pinch and I'd appreciate your insight on how to solve things for the best. We've been operating like a company for about 1 year, and I say "like" because we haven't really got ...
2
votes
5answers
321 views
How to negotiate with a sales guy
I started developing a product in 2001. It was a one off web site for a particular client in which I retained all rights / ownership of the software. By early 2009, the code base had been extended ...
1
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1answer
159 views
How does equity get distributed?
I understand the whole process of how equity should be divided, but what is the actual technical process of distributing equity? Is it a contract? How does someone sell their equity? If I want to give ...
