Equity Questions

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

2 Votes
2 Answers
2.64K Views
CTO wants 30% , should I accept?

I need a CTO to join my start up. It is a mobile app. His proposal: 30% equity and wants a 20% employee pool. Leaving me with a 50:30 split. What I bring to the table:1) I am technical. One...

asked Dec 30 '14 at 00:58
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User34199
46 points

1 Votes
1 Answers
2.36K Views
How to deal a Voluntary Exit from Startup

We are a 3 people company running from last 3+ years, we have our share holding agreement with equal share for each of us but no specific vesting clauses. Now i am planning to quit for personal...

asked Jan 25 '15 at 21:14
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StartupGuy
6 points

2 Votes
1 Answers
1.44K Views
Are incubators worth the tiny investment they give you?

Outside of the big incubators like YCombinator and 500Startups, there are tons of smaller ones that only invest small amounts ($10K-ish) and take around 5% equity in your early stage startup.Are...

asked Apr 17 '15 at 13:11
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Robert Dotson
12 points

2 Votes
2 Answers
1.92K 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
2.35K 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
4.08K 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
7.82K 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
1.12K 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
1.43K 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
1.54K 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
9.51K 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
1.31K 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
1.39K 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
1.88K 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
821 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
1.41K 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
2.87K 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
1.22K 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
1.16K 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
1.51K 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