Equity Questions

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

2 Votes
2 Answers
1.66K Views
Figuring out how much equity to give to angel investors for seed capital?

My startup is in the very early stages. We have a very raw prototype and haven't launched yet and so have no revenue either.Two angel investors are interested in putting $20,000 each in our startup...

asked May 30 '15 at 13:41
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Darlene Vera
11 points

0 Votes
2 Answers
2.07K Views
If I do a 49-50 split partnership do I have the final say as the one with 50% equity?

I just do not know that much about the other person other then he has good tech skills and can take care of a lot of the paper work stuff, that lets me design and build the business. Which is what...

asked Jun 30 '15 at 04:59
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Paul Gilchrist
1 point

0 Votes
2 Answers
3.55K Views
Clawback vs. vesting

What is the difference between clawback and founder vesting? It seems that the term "clawback" was used in connection with the Zynga and Skype cases Equity Clawback - how to avoid Zynga situation

asked Jul 31 '12 at 19:33
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Jhexp
105 points

7 Votes
9 Answers
7.25K 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...

asked Nov 5 '09 at 08:13
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Boolean
388 points

3 Votes
1 Answers
944 Views
Can one who lives in a 3rd world country target an investing round from a VC in the US?

Can someone who lives in a third world country target an investment round from a VC in US? From the likes of Ycombinator, etc?

asked Nov 16 '12 at 12:06
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Iam
16 points

2 Votes
2 Answers
1.22K Views
How much equity is fair for joining a pre-revenue hedge fund?

The manager of a newly established hedge fund has offered me to join the company for 20% of the company + minimal salary. The fund is not profitable yet, and it would take a year, or two, before it...

asked Jun 3 '14 at 03:40
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User33947
11 points

2 Votes
1 Answers
1.35K Views
Founders: how to prevent getting fired by the board after raising a few rounds of financing (with dilution of your ownership)?

Once you raise a few rounds of capital, your equity ownership most likely gets diluted to a minority stake. There is nothing that stops the board from firing the founder at this point. How do you...

asked May 27 '14 at 23:13
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Joshua Propp
11 points

1 Votes
3 Answers
8.81K Views
How much equity should I give up to the app developers?

I am in the process of designing a mobile app and i'm at the stage where I need to finalise the cost with the developers. They have sent me a quote which I believe to be quite high, however they...

asked Mar 11 '13 at 09:56
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Jack
8 points

2 Votes
2 Answers
1.13K Views
Should you give marginal equity to contractors that you hire?

What do you think about giving a tiny amount of equity to contractors and consultants? Do you think it would make them more motivated to do a better job if they have ownership in the company?

asked Apr 17 '14 at 22:42
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Salvatore Cochrane
11 points

3 Votes
2 Answers
1.18K Views
What keeps founders in startup after vesting?

Suppose 2 founders started a company. After 4 years and full vesting one founder decides to leave. Then after 2 more years company successfully sold and both receive the same value. That looks...

asked Apr 16 '14 at 13:46
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Роман Семенов
16 points

3 Votes
2 Answers
1.62K Views
Why should my partner keep me (the sole developer) as a co-founder instead of hiring a contract developer who has no ownership or revenue sharing?

A little background. I built an app for a friend's small business, it was his idea. I went to him when it was finished and told him it's a good idea and I'd like to turn it into a product I could...

asked Apr 3 '14 at 15:19
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Ryan Arneson
16 points

0 Votes
1 Answers
689 Views
Retaining employees who are close to fully vesting their equity?

To keep it simple, let's say you have an employee who is about to fully vest into getting 2% equity in your company. They're a critical part of your engineering team and you want to try to retain...

asked Mar 26 '14 at 21:11
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John Marsh
30 points

2 Votes
2 Answers
1.22K Views
Equity for CTO, brought on around beta

I'm in a predicament. I currently work as a Senior Software Engineer for a medium sized company (top 200 website in U.S.) and get paid above average. This company treats me very well, the people...

asked Mar 11 '14 at 17:15
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User33845
11 points

21 Votes
5 Answers
2.59K Views
Teammates have pushed me out of our venture. What to do now?

I along with 3 other people created a concept for an innovative Ecommerce platform as part of a 5 week startup pre-incubator. We had a great run and on demo day we won the audience and panel of...

asked Aug 20 '11 at 04:10
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Adjoa Opoku
106 points

1 Votes
1 Answers
1.06K Views
What a 1.2% job offer really mean in a 4 people startup that got their first VC round?

I was offered a job at a very small startup. They have just started a year ago. 4 founders started the company together. I'm going to be their first hire. They offered a "pay the rent" salary and...

asked Mar 5 '14 at 05:51
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Mo
6 points

1 Votes
1 Answers
971 Views
Which should I pick: 5% equity or $100,000 performance bonus in an early stage startup less than two years old?

I have the option to take either 5% equity (vested over 4 years) or a $100K cash bonus (paid over 2 years) in a startup that I joined a year ago. The company is less than two years old and we have...

asked Feb 28 '14 at 15:58
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Henrietta Fernandez
35 points

2 Votes
2 Answers
1.33K Views
Need advice on assigning equity structure for 1 year old startup

I need advice and experienced views on establishing a proper original founder equity picture in a project. Here are the details: Founder A - Coder / Co-Product Designer / Co-Original Idea...

asked Feb 25 '14 at 18:49
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Dan Newman
21 points

1 Votes
2 Answers
7.6K Views
Does owning x% equity in a company mean you will get x% of the profits yearly?

If I join a startup that is offering me 10% equity and they become profitable, does that mean I will get 10% of the profits they make each year? At what point in a startup's life does it start...

asked Feb 21 '14 at 15:57
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Duane Clark
50 points

3 Votes
1 Answers
1.18K Views
Best way to deal with co-founder who has second thoughts about equity split a year into the startup?

A year into a startup, your product is built and you have some traction. You see signs of growing discontent in your co-founder so you confront him to see what's up. And then he drops an issue I...

asked Feb 21 '14 at 05:02
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Jared B.
16 points

0 Votes
1 Answers
856 Views
What liquidity options does a founder have early on?

Is there any hope for a founder to sell shares between series seed and series A? After two years of getting a business off the ground with co-founders, I could use cash for family reasons. I have...

asked Feb 21 '14 at 06:28
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User30169
1 point