Equity is the value of an ownership interest in a business.
236
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7answers
141k views
Forming a new software startup, how do I allocate ownership fairly?
I have come up with an idea for a new social networking application. It's not something I expect to be hugely successful, but I think it does have some potential. I've approached a few close friends ...
8
votes
1answer
2k views
How to Divide Up Your Company's Equity
We get a lot of questions about dividing equity and for good reason. Dividing up your startup's equity creates a lot of heart burn for all of us. It's a tremendously stressful affair if you have never ...
8
votes
8answers
2k views
What would be a fair equity distribution between me and my co-founder?
Me (software developer) and my co-founder (UI designer) are looking forward to build a SaaS startup. I would usually lean towards a 50/50 distribution, but in this particular scenario, the ...
16
votes
5answers
1k 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
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 ...
11
votes
4answers
1k views
Developer, offered share in small startup company in return for large rate reduction - advice needed
I currently work freelance as the sole software engineer for a small but promising startup company. I've been working with them for a several months, converting their "demo ware" software into ...
6
votes
6answers
2k views
Equity distribution in an early stage
I would appreciate to get some feedback from you in order to determine the equity distribution of the startup I am currently seting up with friends. The problem is that we've start working without ...
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
695 views
How would I split ownership if I'm typically the idea guy and leading the product development?
This question is very similar to this one: Revenue Split - I am doing 100% of the programming work, he's the idea man
The difference however is that I'm typically the idea guy and will also be ...
4
votes
6answers
1k views
A graphic designer working for equity
With a friend we are doing a spare-time startup; that is, developing stuff on our spare time trying to make something that makes money. We have several products to launch soon but neither of us is a ...
4
votes
3answers
5k views
Can non-dilutable stock (or equivalent) be issued?
I think I understand stock dilution (and I know in quite some cases it's not bad to get diluted) but I was wondering (it's mostly curiosity but I still think it's an interesting question for ...
4
votes
4answers
5k views
What Are Some Good Profit Sharing Packages and Bonus Structures?
I own a bootstrapped startup that now has a big enough customer base where I can actually hire a developer to help me push it to the next level.
Since we don't have all the bells and whistles that ...
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 ...
1
vote
3answers
1k views
Fair equity/profit split when taking on a partner?
I am about to take on a partner to develop a software prototype I built almost a year ago and I need some guidance on deciding equity/profit split.
I know out of past experience that I cannot ...
0
votes
3answers
197 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 ...
12
votes
8answers
2k views
Should we award equity based on specific performance metrics?
My team and I are nearing the launch of our initial product this August. We are wanting to develop a metrics-based system that will be implemented upon product launch that will determine founder's ...
7
votes
3answers
5k views
Looking to get involved with a startup, but no idea on what kind of salary/equity I should expect
I'm considering joining a startup that has raised a few million in Series A funding and I'd be the second developer joining the team. I've been out of college for 4 years and am looking for a senior ...
7
votes
6answers
923 views
I need advice - Lead developer slap in the face
I have been working with a startup for 6 months. It is an advertising company for which there is a very heavy technology portion (I would say 50% of the company is based off of a mobile front-end, and ...
16
votes
3answers
2k views
Are we about to be shafted by a Corporate Shark?
My husband went into business with a gentleman who seemed to be very clued up (he's an accountant). He has numerous other businesses and was able to open doors that we would never have had access to ...
9
votes
8answers
1k views
How to best resolve current problems in my multiple-founder startup
I've been voraciously reading about startups for the last week, this site included. Unfortunately, I've come to the conclusion that the equity structure of our startup needs to change and I would ...
6
votes
8answers
6k views
Equity distribution amongst startup co-founders
I read some articles about Startup Equity Distribution:
Here is one of them: http://blog.weatherby.net/2008/10/startup-equity-distribution.html
They give good insight, but still I couldn't use the ...
5
votes
3answers
1k views
What is the appropriate equity % for software bootstrap key employees?
I have been working with a start up without pay for the last 8 months.
I have been a senior sales executive with tier one companies for the past 20 years. My position is to build and manage all ...
9
votes
11answers
3k views
What's a reasonable amount of equity to retain when you're the key founder?
I'm working with two other partners to get a SaaS startup off the ground. I worked on this thing slowly, mostly on my own, for about two years before approaching my partners. As a background, I knew ...
7
votes
9answers
2k views
Programmers Working For Equity
I've been having so much trouble finding a programmer to work with. I don't have the money to pitch out to hire a developer, I've tried and failed to code on my own, and I rarely get responses from ...
5
votes
5answers
7k views
equity distribution amongst startup co-founders?
I think that a justified equity distribution amongst the co-founders is extremely important for the startup to takeoff, but tricky part is, how to go about doing it ?
I'm curious to know, how does it ...
4
votes
4answers
894 views
Equity split amongst founders
I have gone through all the related questions regarding my case on the website. I still feel that I could post my question because it is different from the others. Please share your thoughts. Thanks.
...
4
votes
3answers
1k views
How is ownership of equity re-distributed at each stage of growth?
I've been researching for over a year now as an aspiring entrepreneur, but I am still fuzzy on how equity gets distributed at every stage of company growth.
Is a set amount of "shares" created upon ...
3
votes
3answers
1k views
Question on Partnership + Revenue Sharing
I founded a business about a year ago, and recently decided to take it in a new direction. Same name and premise, yet slightly different business model. I founded the company as a sole ...
1
vote
2answers
488 views
How much equity is a business plan worth?
Say one person comes up with the idea for a startup, and spends a significant amount of time over 2 years developing the business plan. That person then asks others to join the startup as co-founders ...
10
votes
1answer
3k views
49/51 vs 50/50 Equity Split
What are the advantages and disadvantages of dividing equity 49/51 vs 50/50 between partners?
Edit: 51/49 feels wrong, but there may be some startup cases where it is good if you are the majority ...
7
votes
2answers
4k views
What is an appropriate stock option grant for a senior engineer after the Series A?
I'm looking for suggestions as I'm considering an offer from a startup.
A friend of mine is founding a software startup together with two partners and he's looking for engineers. The idea is ...
2
votes
3answers
929 views
How do you account for future dilution in setting startup equity splits?
I'm a one-person company and I'm trying to get a beta product built and launched. I'm an Internet general manager, I've come up with what I believe is a solid business plan and product concept, and I ...
6
votes
9answers
565 views
Sharing workload between partners when I am the only developer?
I have been dipping my toes into a web-based startup idea with two others.
They approached me with the original seed of an idea, but neither are developers. So I would be building the (fairly large ...
5
votes
2answers
814 views
Stock Splits for founders
I know this has been addressed. However, each set-up is different and I want to proved the particulars on this one to get some thoughts.
I need some help establishing an equitable Cap. Table. My ...
2
votes
8answers
1k views
20% equity and CTO. (Story and details). Is this fair?
This is a long exposition.
Please bear with me, I think that I need to provide as much specifics as possible, while keeping it as short as possible. Thanks for reading, any feedback is much ...
0
votes
2answers
766 views
What is fair equity for a lead or senior level position pre-series A?
I have been consulting with a small biotech firm that has a couple of VERY good engineer founders and no employees. They do know their field very well. They have been around for a year basically ...
0
votes
3answers
492 views
What is an appropriate amount of equity to allocate to designers in a startup?
I am just about to start the design phase of my startup. The design firm gave me a proposal of roughly $25,000 for the initial design process. Which is way out of my current budget. However, I want ...
3
votes
1answer
134 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: ...
3
votes
3answers
223 views
Establishing shared ownership
What is a reasonable software start-up ownership share between founders when one is more senior, putting in some of his own money and able to raise angel money from friends, while the other two are ...
3
votes
3answers
322 views
If I launch a new division within my employer's company, should it be treated as a separate startup?
I've been working for my current employer for the past several years as CTO. I recently pitched them on starting a separate division that is more entrepreneurial and experimental to spin out ...
3
votes
5answers
1k views
When do you split up the equity
I'm involved in a startup with some friends and we haven't formalized the equity split yet.
When is good practice to do something about equity and what do you start with
ie: short letter or formal ...
2
votes
5answers
342 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 ...
2
votes
3answers
484 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
votes
6answers
932 views
How much equity am I worth?
I had a problem that required a database solution. I designed the concept of the database and over a 2 year period developed a crude system that worked.
In trying to find help with the programming ...
2
votes
3answers
1k views
Amount of vesting equity for #3-#4 employee?
Given a startup with 2 founders (one technical and one not-so) that's received VC funding (few millions).
How much vesting equity (%) should the next couple of developers recruited expect?
I've ...
1
vote
2answers
120 views
How much equity for co-founder reducing role for academic program?
I'm a technical co-founder in a pre-funding company in a niche tech segment, working with two non-technical co-founders who have largely overlapping skill sets. I met them at a networking event and ...
1
vote
2answers
164 views
How do you decide how much to pay yourselves, before investment, in a very small startup?
Say your startup:
is made up of two or three people where the equity has already been split evenly,
has some money coming in on a regular basis from a single project worked on by everyone,
but the ...
1
vote
4answers
737 views
5 Co-Founder Dilemma Regarding Roles & Equity
We have a company with 5 co-founders and are having some serious issues with work process. We started with 3 cofounders and just assumed we'd do an equal equity split without thinking it through. We ...
1
vote
3answers
495 views
Is this a fair partnership proposal?
I am the technical founder of a software product, the product is finished with good inputs from at least 6 to be customers. My to be Sales partner who is already helping me from the past 4 weeks ...
1
vote
4answers
423 views
What are reasonable ranges for cash and/or equity to have developer create MVP?
I'm roughly following lean startup methodology, having started with an idea, making mockups, showing to several potential customers, and even running a couple of crude pilots. Positive signals so ...
