Equity Questions

Equity is ownership that both the business owner and investors have in a company.

2 Votes
0 Answers
3.73K Views
Common stock or stock options when getting a co-founder prior to seed funding?

I have built a startup in the last 2 years by myself and have a decent amount of traction. While going out looking to raise some seed capital, one the things that keeps coming up is having a...


1 Votes
1 Answers
2.59K Views
Giving away equity to new member in a startup?

I've been working on a startup for more than a year now, and as a developer, I created a nice product. But things got harder when I tried to sale it, as I have no talent for this. Then I met two...

asked Feb 10 '16 at 14:52
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Francis L
33 points

0 Votes
1 Answers
1.32K Views
How to fire my co-founder who has nothing to do with the start up any more?

I started my company from scratch and found a technical co-founder to build my product. So I managed to hustle in order to find this guy, who was working in a company. He started working for me...

asked Aug 30 '14 at 10:43
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User34129
1 point

2 Votes
0 Answers
2.74K Views
Marketing/Lead generation Partner

Hi I am about to complete a working prototype of an application which is targeted towards other businesses. My strengths lie towards the technical side of the solution, hence would like to...

asked Jan 7 '15 at 06:41
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Suhaib Taqvi
13 points

1 Votes
0 Answers
727 Views
How companies divide company shares between founders and investors?

I came here to ask about: How do companies divide their equity shares among the founders and investors? For example, consider two persons are building a company. Person1 came with the idea of an...

asked Jun 9 '14 at 07:28
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Sky Buzz
36 points

0 Votes
2 Answers
1.25K Views
Paul Graham's equity equation: how does the math work out?

Regarding this excerpt from Paul Graham's essay The Equity Equation:Let's run through an example. Suppose the company wants to make a "profit" of 50% on the new hire mentioned above. So subtract a...

asked Jun 7 '14 at 05:43
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User33952
1 point

0 Votes
0 Answers
532 Views
When does founder liquidity become an option when raising money?

At which point in rounds of financing does partial liquidity for the founders become an option?Is it solely based on which round of financing it is (i.e. Series C, for example)? Or can a founder...

asked Jun 10 '14 at 12:25
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Donald Ocampo
4 points

3 Votes
1 Answers
1.2K Views
If your co-founder suddenly leaves before the MVP is complete, could he have a legal claim down the line?

If there was no paperwork done between the co-founders and one of them decides to leave all of a sudden, can the remaining co-founder still continue building that business?Could the founder who...

asked Jun 13 '14 at 16:56
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Omar Gonzalez
16 points

0 Votes
1 Answers
642 Views
At what point can founders expect some liquidity when raising money?

It's obvious that there is no liquidity for founders during a seed and series A since you are just starting the business.In subsequent rounds, however, when can a founder realistically expect some...

asked Jun 26 '14 at 18:56
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Flora Murphy
2 points

0 Votes
1 Answers
620 Views
Why do most seed investors want about 25% of your startup?

How did the industry settle on this figure (between 20 to 25%)?What was the calculation that led investors to this figure if whether a new startup wants to raise $500K or $1M?


2 Votes
1 Answers
813 Views
What is a resonable offer for a first employee?

A hardware company is keen to hire employee #1 at $42k/y salary and 0.5% equity (common) with a 4 year vest, 1 year cliff. The company has been around in one guise or another for ~1 year (though...

asked Jul 16 '14 at 23:22
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User34083
11 points

1 Votes
0 Answers
608 Views
Do startups that are suddenly have massive growth try to recover equity given to employees?

Lets take Uber as an example. It's going gang-busters and most of the employees are likely holding onto equity worth millions.For employees that still have a cliff that isn't finished (they have...

asked Jul 21 '14 at 19:25
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Ronald Solari
6 points

0 Votes
2 Answers
816 Views
Being offered an advisor position in startup. Should I ask what percentage of my equity represents?

I'm being offered an advisor position in a startup and will be given 20K shares. Should I inquire how much the total share size is? So that I may know that percentage my equity would represent.

asked Aug 2 '14 at 16:58
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0 Votes
0 Answers
697 Views
Selling company to get rid of other equity holders and then buying the company back to own it 100%?

Is it legal to sell your company in order to get rid of minority shareholders and then buy the company back yourself? In order to own 100% of the company the second time around.I have already tried...

asked Sep 16 '14 at 18:29
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1 Votes
1 Answers
1.47K Views
Equity split for advisors, part-time and full-time founders?

I am a part of a software startup that includes the following six founders. We are about to seek VC and we need to make sure that we split the equity in a fair/correct manner. Based on the...

asked Sep 23 '14 at 23:35
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User34135
11 points

3 Votes
2 Answers
1.37K Views
Both cofounders quit. Rebrand?

So me and 2 other cofounders spent a year building a product together, however it got no traction. We have a ery expensive buyout price however, but I don't think it makes sense to buy them out. So...

asked Oct 22 '14 at 21:10
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User34175
16 points

1 Votes
0 Answers
834 Views
Advice on equtiy / royalties agreement with a European company

I've been offered 30% on all sales that I bring in to help a European company expand in the US. They're legally registered in Italy but do not want to register their company in the US just yet. So...

asked Oct 24 '14 at 15:04
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Zach
1 point

2 Votes
1 Answers
1.67K Views
Need opinions: equity, salaries and risk with partners in a startup

Hi all, let me give you a brief run down of my case: a couple of other people and I are thinking about creating a technology startup for a niche marketing product. It would involve an initial ~8...

asked Oct 24 '14 at 06:46
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Awasaba
11 points

1 Votes
1 Answers
1.88K Views
Lawyer involved in co-founder dispute. Partner threatening to quit.

Long story short, approached a friend who is already a co founder of another technology start up that has investment with an idea. He liked the idea. It was my idea, and we started working on...

asked Dec 4 '14 at 03:46
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User34199
46 points

1 Votes
1 Answers
1.59K Views
How much dead equity is bad for investors?

I am a first time founder, how much dead equity is bad, in the event of people leaving?

asked Dec 4 '14 at 21:54
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User34199
46 points