Equity Questions

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

1 Votes
1 Answers
1.35K 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
Blank
Henrietta Fernandez
35 points

2 Votes
2 Answers
1.7K 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
Blank
Dan Newman
21 points

1 Votes
2 Answers
9.23K 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
Blank
Duane Clark
50 points

3 Votes
1 Answers
1.58K 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
Blank
Jared B.
16 points

0 Votes
1 Answers
1.14K 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
Blank
User30169
1 point

2 Votes
3 Answers
1.67K Views
Is there such a thing as an initial equity picture evaluation service?

I am wondering if there is such a thing as a neutral, 3rd party service that provides an outside assessment to help a founding team that is ready to incorporate come to a decision on equity...

asked Feb 20 '14 at 21:32
Blank
Dan Newman
21 points

2 Votes
1 Answers
1.14K Views
How much equity to give to the idea guy?

Here's the situation at hand. I'm a designer, entrepreneur. I work with a lot of talented developers etc. One of my non-technical buddies had an idea for an iOS app. He explained it to be through...

asked Mar 12 '13 at 11:37
Blank
Tyler
16 points

3 Votes
1 Answers
2.56K Views
How much equity is fair for a non-technical co-founder joining pre-revenue with a product ready to launch

What is a reasonable equity split where two people have been working separately on a similar tech idea and are now looking to join forces. These individuals are friends. Despite both working...

asked Jul 27 '13 at 06:41
Blank
Hopeful
16 points

0 Votes
2 Answers
2.14K Views
Taking on a new team member and paying only in equity - legal aspects and pitfalls

Here's my situation. I founded a company very recently (currently an LLC) and have no external funding. I also don't have deep pockets. This is for a startup in the US in Washington state. I...

asked Dec 5 '13 at 18:53
Blank
Newbie
6 points

3 Votes
1 Answers
862 Views
Convertible debt notes that convert at an unrealistic valuation

My company received a $15K investment from a friend of the family (we'll call him Doug) two years ago. I issued him a convertible note (no cap) that would convert to equity in either 2 years or if...

asked Nov 11 '13 at 18:54
Blank
Alan
16 points

0 Votes
3 Answers
1.42K Views
When a company is acquired how are employees compensated?

Let's say you join a small (< 50) hot startup. A month or two after you start, they end up getting acquired for $1 billion. As an employee that just started would you receive any of that money?...

asked Nov 15 '13 at 06:13
Blank
Wwwuser
125 points

1 Votes
1 Answers
965 Views
Cofounder on a salary

I'm looking for a startup opportunity in London. I was given an offer to be a startup cofounder. B2B app for finance market. The team will be me an a business guy. He is giving all the money for...

asked Nov 16 '13 at 03:00
Blank
Lukas
110 points

1 Votes
1 Answers
2.35K Views
How do you decide what salary to pay employees or partners when you first profit?

Suppose there is a situation like this: There are 3 people in a startup, the CEO, a partner, and an investor (very small angel). The investor does no work but has 7.5% equity and 7.5% net profit...

asked Nov 24 '13 at 09:06
Blank
Goose
16 points

0 Votes
2 Answers
1.32K Views
Partnering with a consulting company

I have an opportunity to build a software with a subscription model with my partner who is the domain expert. We found a consulting company who is willing to due the whole development and...

asked Oct 22 '13 at 16:14
Blank
Adam
1 point

5 Votes
3 Answers
2.64K Views
Early investor wants to cash out

Our company had an early partner that came in on the 'ground floor' and promised to one of the first hired employees. He invested money into the company for an partner's equity share (25%). A few...

asked Oct 26 '13 at 04:58
Blank
The Brock Ellis
28 points

2 Votes
1 Answers
1.53K Views
Tech startup equity split question

First about my background: I have been programming and consulting for 15 years, with expertise in C#, Asp.net, t-sql, Pl/sql, JavaScript, and to a lesser degree Java, Python, NodeJs etc... I would...

asked Oct 31 '13 at 22:25
Blank
Beer Drinker
13 points

0 Votes
1 Answers
997 Views
Do Angels And VC Look Favourably On Prospective Investees Where Protected Equity Holdings Exist

as a means to enable investment of non fiscal resources across a wide range of disciplines into early stage enterprises we have devised a protected equity model that sees 'sweat equity investors'...

asked Nov 1 '13 at 00:33
Blank
Emile Emiabata
1 point

1 Votes
2 Answers
1.24K Views
Equity in a project but not in company

Can I give someone stake/equity/shares or similar for a project in the company without giving that person any equity in the company? If not, has anyone found ways to accomplish something...

asked Nov 2 '13 at 08:32
Blank
Javier Figueroa
106 points

2 Votes
2 Answers
990 Views
Helping an established company double or triple their worth

Assume Bob is looking for a job. Bob has the skills to develop something that within a few months may possibly double or triple the worth of a well established company. The company is aware of...

asked Sep 30 '13 at 02:22
Blank
Mi Gusta
120 points

1 Votes
2 Answers
1.18K Views
Should I take into account an investment in terms of software as a sunk cost?

One of my partners, in an online service startup, is going to put the software design as his investment and share on equity. The rest of us are putting in time and money. But now came up a...

asked Oct 4 '13 at 00:31
Blank
Christian Rojas Alves
8 points