Equity is the value of an ownership interest in a business.
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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.
...
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 ...
0
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3answers
71 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 ...
0
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3answers
123 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. ...
8
votes
2answers
256 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 ...
1
vote
2answers
81 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 ...
0
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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 ...
0
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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 ...
0
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2answers
57 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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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 ...
2
votes
1answer
86 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 ...
2
votes
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 ...
1
vote
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 ...
1
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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 ...
1
vote
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
votes
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 ...
0
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1answer
71 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 ...
0
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1answer
139 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 ...
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 ...
-1
votes
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 ...
-2
votes
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 ...
-3
votes
1answer
74 views
How much equity is normal for a programming VC to take for developing a mobile app?
I'm in the process of developing a mobile app for a niche industry B to C. We have an established brand in 17 countries (hard goods)and significant credibility in our industry. It's not, but as an ...
3
votes
0answers
116 views
Equity for First paid Tech-employee in a not-profitable financed Startup
I'm trying to be as specific as possible here:
We are a Startup 5 months on the go with three co-founders. Since none of us can truly code we need to employ our first Web-developer and we have found ...
1
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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 ...
0
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0answers
16 views
Dividing equity for a Management Buyout
I currently work as CTO and VP Engineering with a company that has offered to sell the company to the President. The president and I originally started this company that was acquired several years ...
0
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0answers
60 views
Fair equity/cash for one year's contribution?
So I asked a broader question on this situation before, but am now trying to narrow it down to the core issue after negotiations failed yet again with my co-founders.
I am a tech guy who joined a ...
0
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0answers
155 views
Restricted Stock Units (RSU) in a job offer
I've seen a few job offers where in addition to the salary the company offers X,000 Restricted Stock Units (RSU). I'm still trying to understand owning equity as one of the early employees for a ...
0
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0answers
97 views
How to validate equity offer in a pre-IPO company
I have a job offer from a pre-IPO company. They announced that they will go public in a year or two and their current valuation based on last round of funding is about $300M. They offered me to own ...
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0answers
75 views
Change in equity split when founder is dying?
I'm currently involved in a software start up with two other people.
Abe started the company a couple years ago. He outsourced development for $100k. He's worked a lot of hours, but on a part time ...
0
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0answers
45 views
Shareholder agreement to cover leaving employee's shares
we are currently setting up a shareholders agreement for three eqaual partners with 33 1/3 share each, however within 5 years one of the shareholders is up for retirement.
The original document ...
0
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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 ...
0
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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 ...
0
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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
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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 ...
0
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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 ...
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 ...
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 ...
