Equity Questions

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

2 Votes
3 Answers
1.21K 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
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Dan Newman
21 points

2 Votes
1 Answers
869 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
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Tyler
16 points

3 Votes
1 Answers
2.24K 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
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Hopeful
16 points

0 Votes
2 Answers
1.74K 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
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Newbie
6 points

3 Votes
1 Answers
680 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
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Alan
16 points

0 Votes
3 Answers
1.09K 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
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Wwwuser
125 points

1 Votes
1 Answers
753 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
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Lukas
110 points

1 Votes
1 Answers
1.88K 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
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Goose
16 points

0 Votes
2 Answers
957 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
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Adam
1 point

5 Votes
3 Answers
1.97K 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
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The Brock Ellis
28 points

2 Votes
1 Answers
1.27K 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
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Beer Drinker
13 points

0 Votes
1 Answers
705 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
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Emile Emiabata
1 point

1 Votes
2 Answers
945 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
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Javier Figueroa
106 points

2 Votes
2 Answers
758 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
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Mi Gusta
120 points

1 Votes
2 Answers
871 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
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Christian Rojas Alves
8 points

0 Votes
1 Answers
774 Views
Giving Equity Against New Business

I started a company in India in June of 2012 focusing on Web & Mobile App Outsourcing Space. In past 1 year we have grown to revenue of $1M+ and we are expanding fast. The company is...

asked Oct 5 '13 at 17:51
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Mukul Gupta
6 points

1 Votes
1 Answers
1.96K Views
How much equity co-founder in a CTO position (for an existing StartUp) should get

I am wondering how much equity (in percentage) should I demand for a co-founder CTO position in a start-up which opened 7 months ago? Here are some details on the start-up: = The main founder is...

asked Oct 9 '13 at 22:20
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Uri
106 points

1 Votes
1 Answers
854 Views
equity bonus for early stage employee if contacts produce investment

I'm a developer and I've been working with a startup for awhile and things are now getting (more) formalized with regards to equity (grants) and vesting. I am getting equity as a developer but my...

asked Oct 19 '13 at 07:00
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Daysareokay
6 points

1 Votes
4 Answers
1.22K Views
Giving Equity to Marketing / Sales / Referral Partner

I started a company in India in June of 2012 focusing on Web & Mobile App Outsourcing Space. In past 1 year we have grown to revenue of $1M+ and we are expanding fast. The company is...

asked Sep 13 '13 at 04:31
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Mukul Gupta
6 points

1 Votes
3 Answers
3.23K Views
How can a very early stage startup remunerate an advisor?

Here is the specific question: I am a co-founder of a very early stage technology start-up. We have a good early level feedback on the nearly finished prototype(with a lot of features that we have...

asked Sep 14 '13 at 00:17
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User2530668
6 points