First equity what questions should I ask and how?


Last month I was offered for an equity on a startup venture. It's an online store focus on selling customized toys. Their business models looks good and promising. But I just have few doubts and questions that I'd like to ask them. I'm just not sure if it's appropriate or I would sound stupid asking them. To give you an idea, I would be a Graphic Designer in that startup.


  1. How should I ask what will be my share in the company? in terms of stocks and money.
  2. How do I get paid?
  3. How many hours would I have to dedicate to the business? I'm a freelancer so usually I only dedicate 4 hours per client.
  4. How can this equity be useful in my future career? Can I put this on my profile or resume?
  5. Are there other benefits?

Please help. thank you!

Equity Business Partnerships

asked Mar 6 '12 at 23:38
140 points
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1 Answer


You have good questions listed already but I would add a few more and take some of these out. Take out #4, as Equity doesn't have anything to do with your further career but work is, so you can definitely put this on your Resume.

I would rephrase #3 to be: What are your expectations? The hours will be determined based on that.

Change #2 to: Will there be a salary or will this be dividend only?

Add a couple:

  • What is the vesting period of the equity?
  • What are the buyout options prior to full vesting?
  • How's the business funded?

I would also ask:

  • When is the expected go live date?
I'm sure there might be more questions but I think this will give you a good starting point.
answered Mar 7 '12 at 01:41
1,779 points

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Equity Business Partnerships