Tagged Questions

0
votes
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: ...
0
votes
3answers
134 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. ...
2
votes
1answer
79 views

Have good MVP, need capital to grow, new to getting funding

We have what we believe is a pretty solid MVP for a enterprise software product. Without much advertising, we've had people find our website and purchase and use the product, and the initial feedback ...
0
votes
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 ...
0
votes
1answer
94 views

How much equity should these founders have? [duplicate]

Me and my 3 partners are in the early stages of a gaming start up company. We are now looking to split the initial equity in the company because we are not all on equal terms. Person#1 is an ...
3
votes
2answers
140 views

What are some creative ways for a cash poor start up to compensate a designer?

We are in need of a designer for our start up, but we are pretty much cash poor. I have been talking to a designer for a few days, and he really wants to help as he loves our idea. He is very ...
2
votes
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 ...
4
votes
1answer
221 views

Start up valuation - how much equity

Approached by 2 founders that are very early days of executing an idea. They have some good .com properties that will be central to brand/idea and had recent offers around $100K, with one outlier ...
1
vote
2answers
108 views

C Corp Investment Documents [closed]

What the appropriate documents needed for one to buy into a (Delaware) C Corp (private)? What are the documents that the Company needs to issue in order to confirm the investment?
3
votes
5answers
268 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 ...
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
vote
2answers
64 views

Funding Cash, Who should contribute to the company's assets?

So let's say we have company ACME. ACME has 2 people: John - Founder ( %70 Equity ) Dan - Sales ( %30 Equity ) An investor came up and invested $100k and demands %20 of shares. Question Time: ...
5
votes
3answers
304 views

Getting VC funding but one partner doesn't want to dedicate full-time

I would really appreciate your guidance and advice. Great community. I am a co-founder of a two year old start-up that is finally getting proper VC funding ($1MM injection). Currently, the founders ...
3
votes
2answers
301 views

What is the value of my IP (in terms of equity)

Here is the scenario: I am the ceo/founder of a company that will be launching a website/application. The amount of cash I have invested thus far is less than 3,000. I am currently seeking ...
6
votes
1answer
190 views

Equity and compensation for boot strapped venture

I have been approached by a friend to help with the business side of a venture that he has developed/bootstrapped. No external funding until now. He has developed a working product with outsourced and ...
8
votes
2answers
1k views

How can a past employee protect themselves against share dilution?

What is share dilution? How can I, as a past employee of a company where I exercised my share options, know if my shares are subject to dilution? How can I protect myself in future from share ...
7
votes
2answers
3k views

What is the difference between Series A, Series B and Series C investment?

What is the difference between Series A, Series B and Series C investment for a startup? How does this affect salary and/or equity expectations if I am looking to join a startup in a ...
2
votes
1answer
625 views

ideas for compensation contract with series B startup

Hi and thanks in advance. I've done some looking around to determine where to start with startup compensation. I work as a contractor exclusively for a startup currently in series b round, I've been ...
4
votes
3answers
418 views

What are the pitfalls of converting early employees' common shares to preferred and then selling them to investors?

This is a question about private, VC-funded, growth stage companies. It seems to be a new trend to allow early employees to sell some of their shares when the company does a new funding round. For ...
1
vote
2answers
651 views

What is a reasonable percentage of equity

What is a reasonable percentage of equity that I should expect to give up to an angel investor in exchange for their investment?
3
votes
3answers
469 views

Alternatives to raising capital without giving up equity

I am from India - Bombay and have started this trading business of Cast Iron Brackets which is used to fix up wall hung commodes in bathroom/toilets, urinal commodes and wash basins alike. It's been ...
0
votes
3answers
226 views

If one of your close acquaintances asks for some money from you, without a timeline or guarantee of returning it, how much would you cough up?

A close friend (or a mere acquaintance) of yours approaches you. States that he/she is badly in need of some money. And you oblige. In the back of your mind you know that the money would be returned ...
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 ...