Equity is the value of an ownership interest in a business.
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19 views
Equity/Profit share split for small projects with unknown levels of contribution
Alright, I have a pretty clear understanding of how to split equity for real startups, but how to do it for a smaller project (an app), with little acquisition potential (just profits), and a team ...
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1answer
145 views
Thoughts on offering Software development in return for Equity for a tech startup
I have been developing some software for an online venture in return for significant equity. I am working with another founder who is developing the business. The current thinking is to value our ...
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1answer
73 views
Percentage allocation for my startup reasonable?
I've developed a new product that I am going to be selling and putting on the market. I had been planning on funding everything with my own personal savings. I have a friend (Mike) who believes in the ...
8
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2answers
259 views
Late founder equity allocation
Guy is late coming founder, the company not yet incorporated.
I designed the product (several biomed multisensor devices) and taken it from concept to a mature prototype ready for manufacturing (1 ...
3
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1answer
114 views
Niche financial markets software product : How much equity in return for £100k?
Over the last two years or so I've been developing a software product in my spare time(I'm still currently consulting at an investment bank). It's fairly niche in that it's targeted only at banks and ...
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0answers
16 views
Business equity [closed]
The last few months at my company have made me worried. I work for a small software development company, there were 5 of us: 2 techy's, 2 developers and my boss. 1 tech left leaving me to cover her ...
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0answers
49 views
What happens when I run out of money? [closed]
The startup I helped launch and have worked for in a management position for 2 years ran out of money somewhat unexpectedly and is in the process of raising more. So the CEO cut my hours (and all ...
2
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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.
...
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1answer
58 views
How much equity do I give [closed]
We are currently three partners in a tech start-up. I'm the founder and hold 85% of the stake. One of my partners is building the analytical engine which is kind of the backbone of our business and ...
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2answers
73 views
Appropriate equity for marketing / development work?
Looking for a little guidance on an equity offer for a project I'm involved in.
I was approached six months ago by a founder-developer who has written software to accomplish an idea originated by a ...
4
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3answers
132 views
Fundraising seed capital with just a business plan and no product
We have a great idea for a product in a niche market ripe for a paradigm shift on the way business is done. All we have is a kick-ass business plan with detailed projections, costs, marketing, etc - ...
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2answers
96 views
Equity for Mentoring and guiding a startup
I am a first generation entrepreneur. I am going to start an ecommerce venture with two other co-founders. However, we have a group of people helping us with the development of our product. They are ...
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2answers
68 views
Does equity stake truly affect voting position?
In this question, the original poster has a hidden question in:
Giving up an equity stake puts me at a disadvantage from a voting perspective (or does it?) Can you structure it as a non-voting ...
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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. ...
0
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1answer
60 views
How Long is A Sidekick Obligated to Be Your Partner? [closed]
Thanks for your help guys. I'm trying to understand the terms of "employment" for a startup side kick.
Basically, I've got a good idea for a startup. There's a kid who's going to Yale who wants to ...
0
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1answer
48 views
Investing in startups online
I've seen plenty of websites that utilize philanthropic crowd-funding, but I'm unable to find any websites that allow people to purchase equity online. Are there any? If not, for what reason?
Note: ...
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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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1answer
38 views
Equity distribution software SaaS spin-off
I have been working in a consulting agency for a couple of years. Besides my standard job responsibilities, I was accountable for the technology. Some years ago we developed a software, for internal ...
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4answers
39 views
Non-dilutable options
I have an entity I've been working on for roughly 4 years, the last being a real push to get it out the door. A student recently joined me and got us into a student business plan competition and we ...
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2answers
409 views
Gross profit royalties vs non-voting equity
I began work with a small startup last year, working as a consultant. Consulting didn't last long because I saw great potential in the company and made it clear I wanted to be a part of it.
I ended ...
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1answer
66 views
equity max of 23% split among “development” — a ripoff?
I've been working on a project with three other people: one is a developer, one is a manager type, and one is a sales type. I'm a developer. The two developers were invited into the project by the ...
0
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2answers
58 views
Anti-dilution 'downside' protection clause - are these ok?
For a start up is there a down side for a smaller owner to have an anti-dilution clause protecting the individuals downside (eg 'not to fall below 10%', for ex). If they're ok, what's the highest % ...
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1answer
155 views
Splitting equity between founders
X was working part-time on an idea and after about a year and a basic demo in hand, he talked to two potential people (A and B) who would become co-founders but would work part-time just like X. The ...
4
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2answers
240 views
Left my startup pre-launch. What percent equity is fair?
6 months ago I quit my job to start a startup with two other people. I'm the business guy. I worked full-time on the project from day No. 1, and made substantial contributions to branding, customer ...
2
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1answer
84 views
Equity in a business driven by software?
I am completely new to negotiating equity, and I don't know where I stand with regards to pushing back on potential offers of equity based on a new project.
If anybody could give me their view on my ...
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2answers
82 views
Value of technical expertise vs. industry connections, initial risk, and business management
I have been given an offer to join as a partner for an existing startup as the technical owner, and am not sure what is fair in terms of equity.
The current owner has the connections and experience ...
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1answer
62 views
Equal partner is making demands that go back on our initial agreement in writing
I'll try to outline this quickly.
Two equal, 50/50, partners - one is building/creating the product, running all operations, etc…the other is footing the bills and will be doing the sales.
At the ...
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3answers
76 views
How do I add a new business partner?
We are a tech consulting company and our current group consists of four equity partners. We are interested in adding a new "business" partner, as our current partners are all technical, but we know ...
2
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1answer
88 views
How much equity for a non-founding (but close) CTO
I am the founding President/CEO of a SaaS startup. I am the majority owner of the co with 60% of initial shares. I am a small biz guy who has worked with one other startup. I don't have a ton of ...
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3answers
458 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 ...
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2answers
122 views
Should I give an investor equity for a short term investment?
We are not so much a start up company; been doing business for over 7 years and started off with an investor which was considered a loan with interest. Now we are up to receive anywhere from ...
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3answers
127 views
How much equity should I give investors
I am seeking a $2M investment to take my patented product to next level. I have been told my product is unique and can be used in a variety of industries by both commercial and residential users. ...
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2answers
42 views
Does having a controlling interest in a startup offer investors additional protection?
It reduces the risk for the entrepreneur but I also came across the complementary view that it might offer the angel/VC an added level of protection. How does that work?
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2answers
53 views
Should initial contribution or future contribution determine equity stake?
I just launched my business which I have been developing for about a year. And in less than 2 months the business already has about 12 dedicated clients and we have made sales and refilled our ...
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0answers
30 views
How to divide ownership among three founders - Founder A introduces Founder B to Founder C [closed]
I (Founder B) have contacts, relationships and business experience in a particular industry. Founder A introduces me to Founder C who has developed software and methodology/expertise that seems to ...
19
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6answers
989 views
Teammates have pushed me out of our venture. What to do now?
I along with 3 other people created a concept for an innovative Ecommerce platform as part of a 5 week startup pre-incubator. We had a great run and on demo day we won the audience and panel of ...
3
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2answers
112 views
If all the employees are non-salaried founders, do we need to send out W2's?
We founded a C-Corp in fall 2012. None of us are taking a salary and there are no salaried employees. Do we need to send out W2's?
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2answers
94 views
How do divide up equity if I'm providing the idea, mentoring and a smalll amount of funding
I have what I think is a really good idea for a product/business. I don't have time to develop it so I'm thinking of sharing the idea with some entrepreneurship students at a local university.
I ...
0
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1answer
75 views
Equity split 50/50 and past contributions
I've checked other questions but none cover the topic of past contributions. I'm wondering how much weight does time spent before incorporating matter.
Do Founder A earlier contributions have enough ...
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1answer
67 views
What is a good cash/equity mix for a 1099 programmer and/or designer for 4 to 6 month term?
We have been coding now for about 6 months on our startup. Up until now, we have bootstrapped the entire project on pennies, being cash poor. Fortunately we were able to raise a small friends and ...
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1answer
116 views
Designer Pay and Equity
We have a physical product, with proprietary IP. My partner and I own 98.25% combined. We issued 1.75% ownership to a designer who wanted equity versus working "freelance". The designer owns his own ...
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1answer
61 views
Best way to commercialize a software
My associates and I own a services business. To improve efficiency we started to developed own software two years ago. The software we developed seems to be very effective and time-saving for us and ...
0
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1answer
168 views
What percentage to give UI/UX designer co-founder? [duplicate]
This is a general question for company shares:
My partner and I have an equal stake in our company. We want to bring in a designer since both of us suck at UI. We have one in mind.
Since we own the ...
0
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1answer
47 views
How legally binding is a pre-incorporated agreement?
Our startup was founded by 3 people and is in it's final stages of development. One of the founders wants to pull out but keep their 33%.
We have a one page document signed by the three of us ...
6
votes
3answers
200 views
Is a 50/50 equity split without 50/50 control a doable and wise thing?
I've found a great partner for my second tech startup, and want to structure this one better than the first, which made money but eventually got ugly due to poor choices my younger self made along the ...
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3answers
168 views
How much equity should I give up to the app developers?
I am in the process of designing a mobile app and i'm at the stage where I need to finalise the cost with the developers. They have sent me a quote which I believe to be quite high, however they have ...
0
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2answers
75 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. ...
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3answers
124 views
How much equity + salary should a Technical CoFounder get?
I am unable to decide how much should I get by reading the meta thread about equity hence I am asking it here.
I got offer as a technical partner in one web based start-up from two business guys with ...
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1answer
82 views
How do we earn real world cash from equity?
This question is about how does an owner of company who own n% equity of company as a technical co founder makes real world cash. This is not about regular share holder who buys share to make money. ...
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3answers
214 views
Did I Make A Mistake On A 60-40 Deal?
I am a software engineer, blogger, marketer and upcoming entrepreneur. I just programmed an app to help corporate sites in marketing. I did all that alone, launched it and started getting clients. I ...
