Equity Questions

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

2 Votes
2 Answers
2.14K Views
Does having a controlling interest in a startup offer investors additional protection?

It reduces the risk for the entrepreneur but I also came across the complementary view that it might offer the angel/VC an added level of protection. How does that work?

asked Apr 19 '13 at 01:10
Blank
Moonstar2001
186 points

0 Votes
2 Answers
3.09K Views
Should initial contribution or future contribution determine equity stake?

I just launched my business which I have been developing for about a year. And in less than 2 months the business already has about 12 dedicated clients and we have made sales and refilled our...

asked Apr 23 '13 at 01:18
Blank
Rasheeda
65 points

1 Votes
2 Answers
2.69K Views
Value of technical expertise vs. industry connections, initial risk, and business management

I have been given an offer to join as a partner for an existing startup as the technical owner, and am not sure what is fair in terms of equity. The current owner has the connections and...

asked Apr 24 '13 at 08:43
Blank
Guest215
6 points

2 Votes
3 Answers
2.54K Views
Did I Make A Mistake On A 60-40 Deal?

I am a software engineer, blogger, marketer and upcoming entrepreneur. I just programmed an app to help corporate sites in marketing. I did all that alone, launched it and started getting clients....

asked Mar 25 '13 at 04:15
Blank
Rasheeda
65 points

4 Votes
2 Answers
1.84K Views
Equity in a business driven by software?

I am completely new to negotiating equity, and I don't know where I stand with regards to pushing back on potential offers of equity based on a new project. If anybody could give me their view on...

asked Mar 26 '13 at 01:00
Blank
Dee Mac
123 points

1 Votes
3 Answers
2.98K Views
How much equity + salary should a Technical CoFounder get?

I am unable to decide how much should I get by reading the meta thread about equity hence I am asking it here. I got offer as a technical partner in one web based start-up from two business guys...

asked Mar 26 '13 at 19:08
Blank
Abhijit Navale
245 points

1 Votes
1 Answers
1.86K Views
How do we earn real world cash from equity?

This question is about how does an owner of company who own n% equity of company as a technical co founder makes real world cash. This is not about regular share holder who buys share to make...

asked Mar 26 '13 at 19:31
Blank
Abhijit Navale
245 points

6 Votes
3 Answers
4.57K Views
Is a 50/50 equity split without 50/50 control a doable and wise thing?

I've found a great partner for my second tech startup, and want to structure this one better than the first, which made money but eventually got ugly due to poor choices my younger self made along...

asked Mar 29 '13 at 02:45
Blank
Smarterthistime
31 points

1 Votes
1 Answers
2.05K Views
equity max of 23% split among "development" -- a ripoff?

I've been working on a project with three other people: one is a developer, one is a manager type, and one is a sales type. I'm a developer. The two developers were invited into the project by the...

asked Mar 29 '13 at 13:28
Blank
Brannon
146 points

2 Votes
1 Answers
4K Views
How much equity for a non-founding (but close) CTO

I am the founding President/CEO of a SaaS startup. I am the majority owner of the co with 60% of initial shares. I am a small biz guy who has worked with one other startup. I don't have a ton of...

asked Mar 29 '13 at 13:50
Blank
Tj Sherrill
129 points

0 Votes
1 Answers
2.34K Views
How legally binding is a pre-incorporated agreement?

Our startup was founded by 3 people and is in it's final stages of development. One of the founders wants to pull out but keep their 33%. We have a one page document signed by the three of us...

asked Mar 30 '13 at 20:41
Blank
Rangerrick337
13 points

-2 Votes
1 Answers
1.93K Views
Best way to commercialize a software

My associates and I own a services business. To improve efficiency we started to developed own software two years ago. The software we developed seems to be very effective and time-saving for us...

asked Apr 3 '13 at 22:57
Blank
Gauthier
1 point

2 Votes
2 Answers
2.37K Views
How do divide up equity if I'm providing the idea, mentoring and a smalll amount of funding

I have what I think is a really good idea for a product/business. I don't have time to develop it so I'm thinking of sharing the idea with some entrepreneurship students at a local university. I...

asked Apr 4 '13 at 13:09
Blank
Clay Nichols
737 points

0 Votes
3 Answers
1.9K Views
Equity for Mentoring and guiding a startup

I am a first generation entrepreneur. I am going to start an ecommerce venture with two other co-founders. However, we have a group of people helping us with the development of our product. They...

asked Mar 12 '13 at 02:39
Blank
Jishnu Jagajeeve
1 point

1 Votes
2 Answers
2.23K Views
CEO didn't really function for a year+, steps down, but want to keep his equity minus a bit. Make sense?

We are 3 partners, working on a mobile / web startup for a year and 4 months. The CEO didn't put this startup as his #1 priority as he's involved in some other ventures. Apart from a meeting or a...

asked Mar 13 '13 at 08:44
Blank
The Lean Startupist
6 points

0 Votes
2 Answers
2.61K Views
Appropriate equity for marketing / development work?

Looking for a little guidance on an equity offer for a project I'm involved in. I was approached six months ago by a founder-developer who has written software to accomplish an idea originated by...

asked Mar 14 '13 at 18:08
Blank
Alan
1 point

2 Votes
2 Answers
2.32K Views
Reassessing a 50/50 partnership, help appreciated

I decided to I wanted to franchise a retail business and a colleague said they wanted to see the business plan. They loved it and believed in the work I had put in a decided they wanted to go into...

asked Mar 15 '13 at 21:51
Blank
Kimberley
11 points

1 Votes
1 Answers
1.82K Views
Finding Investors/partners to fulfill the following needs

You've probably heard this before, but I came up with the idea for great product and I developed it. I measured the demand for it personally, by demonstrating it to the target audience and got a...

asked Mar 16 '13 at 02:03
Blank
Mi Gusta
120 points

1 Votes
4 Answers
11.8K Views
Verbal Partnership Agreement Binding?

I have a provisional patent for a product that I have been developing. I had a meeting last weekend with two individuals and we have verbally agreed to form a partnership. The partner who will be...

asked Mar 18 '13 at 08:19
Blank
Bill
6 points

0 Votes
1 Answers
2.06K Views
Buy out scenario and bringing on an equity investor

A company has $180,000 invested into it. In order to buy out a partner I need $88,000. My current manager wants to invest in the company and I am encouraging it in order to keep a long-term...

asked Mar 19 '13 at 03:06
Blank
Kimberley
11 points