Equity Questions

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

3 Votes
5 Answers
2.12K Views
When do you split up the equity

I'm involved in a startup with some friends and we haven't formalized the equity split yet. When is good practice to do something about equity and what do you start with ie: short letter or...

asked Oct 17 '09 at 23:39
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Scott Cowan
156 points

2 Votes
5 Answers
2.08K Views
How do you reward for innovation?

It seems to me that encouraging innovation is extremely important for startups, but how do you reward it? If one employee contributes 10 good ideas that never get across the line, and another...

asked Oct 22 '09 at 23:10
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Rick Measham
111 points

4 Votes
3 Answers
2.38K 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...

asked Oct 23 '09 at 11:08
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Joe
272 points

2 Votes
5 Answers
2.49K Views
Sample Term Sheets?

My company is working with a handful of private investors and we would like to see what a typical term sheet looks like. Does anybody know where I can find myself some sample term sheets that show...

asked Oct 13 '09 at 04:46
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Jason
152 points

5 Votes
4 Answers
8.13K Views
equity distribution amongst startup co-founders?

I think that a justified equity distribution amongst the co-founders is extremely important for the startup to takeoff, but tricky part is, how to go about doing it ? I'm curious to know, how does...

asked Oct 10 '09 at 19:47
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Phoenix24
126 points

1 Votes
6 Answers
2.59K Views
What is a PPM and what is it used for?

What does PPM stand for? Why would I need it if I am getting investors. I am talking to a company now that says I have to spend ~$40K for books (Blue Sky Laws?) before they can go to investors to...

asked Oct 11 '09 at 05:24
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Jason
152 points

262 Votes
7 Answers
182K Views
Forming a new software startup, how do I allocate ownership fairly?

I have come up with an idea for a new social networking application. It's not something I expect to be hugely successful, but I think it does have some potential. I've approached a few close...

asked Jan 22 '10 at 07:37
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Matt
1,383 points