Equity Questions

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

4 Votes
2 Answers
3.02K Views
What questions to ask when interviewing for a startup offering equity

I'm interviewing for a Lead Developer role in a company that is asking me to take a cut in salary in exchange for a share of equity over 3 year period. I'm not necessarily opposed to the idea, but...

asked Apr 30 '12 at 13:18
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Marty Pitt
171 points

4 Votes
3 Answers
8.05K Views
Co-founder leaving startup, how should we set equity?

Here's the scenario my startup is in and I'd appreciate some thoughts on how to solve several issues we have. We're 3 co-founders (2 biz, 1 dev) and we've been working on an idea for the past ~12...

asked May 1 '12 at 20:06
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Yuval A
121 points

0 Votes
2 Answers
2.56K Views
When to grant sweat equity to a non-employee/non-founder

My partner and I founded a start-up personal service business. We own A shares (voting) and are working full-time on the business. We have procured investors, who own B shares (non-voting). The...

asked May 2 '12 at 03:30
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Susannah
1 point

1 Votes
1 Answers
3.1K Views
How much equity should I give for contracted labor?

I am the sole founder of a bootstrapped startup (idea conceived by me, revenue model and business plan developed by me, and I filed a provisional process patent for the concept). I have incoporated...

asked May 3 '12 at 10:40
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Ric Bray
13 points

1 Votes
2 Answers
2.38K Views
How to value a Project Manager versus actual Technical/Engineering talent?

I have relatively little experience with recruiting, determining compensation and hiring for startups since this is my first go at it. My approach is that there isn't a single right answer on...

asked May 3 '12 at 15:10
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User1195763
6 points

4 Votes
2 Answers
2.67K Views
Co-founder with non-voting shares

I have an offer on a table to join this really exciting venture at 50/50 split as a tech co-founder but the original founder insists on issuing me non-voting shares. He worries that he will loose...

asked May 4 '12 at 08:44
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Tech Cofounder
21 points

1 Votes
3 Answers
3.53K Views
Product equity rather than company equity - any examples?

We're all familiar with the traditional shared equity arrangements in a startup; Some contribution = Some % of shares (thus equity) in the company, which may or may not payoff down the road at...

asked Apr 16 '12 at 12:18
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Inator
106 points

1 Votes
3 Answers
2.93K Views
Profit Share with Customers

Has anyone here ever tried giving a share of company profits to regular clients? We are thinking of allocating about 30% of after tax profits to a pool in which our regular customers share. The...

asked Apr 18 '12 at 18:05
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Jacques
6 points

-1 Votes
2 Answers
1.81K Views
Equity splits for new company are threatening to tear it apart before it gets off the ground

hope to get a few outside opinions here. The cast of the saga: "M" - the "idea person", has experience, has (or will have) money from property in near future, unemployed at present "B" - A...

asked Apr 19 '12 at 07:14
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C Uk
4 points

2 Votes
1 Answers
1.98K Views
Project building a product for a startup — equity or % of revenue?

I am a Rails developer with a job who does projects on the side. I've been asked by a couple of friends to build a product for their startup, nothing too special/creative technology wise. They...

asked Apr 22 '12 at 05:47
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Erik J
111 points

0 Votes
2 Answers
2.9K Views
0.5% equity and 2k/month to be the #1 CDO in a startup

I really need your help. It 's the first time I've been asked to work for a startup. The company has already been made??, founded by 2 partners, and has already received an initial investment, but...

asked Apr 6 '12 at 20:58
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Vin
1 point

3 Votes
2 Answers
4.4K Views
What if the startup I work for gets bought out?

I am the technical founder of the startup that I work for. My software, that I architected, runs on a device that has won a Gold award even before the trade association's show. The startup is...

asked Apr 7 '12 at 02:30
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Someone Somewhere
116 points

0 Votes
0 Answers
2.21K Views
Thoughts on equity split

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? I'd appreciate your thoughts on this situation: I am a developer that has worked on a on 2 products for...

asked Apr 7 '12 at 05:12
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Jack Jones
101 points

0 Votes
3 Answers
4.61K Views
'Startup' enterprise software application, question about ownership between investors and developers

Over the past four years, my business partner and I founded a company that is planning on selling B2B software. We have been paying the developers to create the software, thus keeping full...

asked Apr 11 '12 at 01:07
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User17410
5 points

0 Votes
1 Answers
3.27K Views
Paying App developers in equity?

I am starting a software company. We will start with one service in particular, but will expand from there. My question is, is it reasonable to pay developers in equity alone? Also, seperate...

asked Apr 11 '12 at 02:41
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User51648
9 points

1 Votes
2 Answers
2.63K Views
Formula to evaluate the earnings potential when joining a startup

I'm trying to come up with a rough formula to help decide if I should join a startup. I'd like to weigh my current pay vs joining a startup, taking into account opportunity costs and possible final...

asked Apr 14 '12 at 03:26
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Nick P.
6 points

1 Votes
2 Answers
3.03K Views
How much equity should an active investor get in an early stage of a startup?

I'm the only executive, I have 100% of the shares, I have 4 employees.I built the prototype on my own and I'm almost launching. This person has intense experience in tech but not as an investor....

asked Mar 24 '12 at 16:26
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Zapoo
303 points

5 Votes
2 Answers
2.59K Views
Having less equity than an investor

Suppose a company (C-Corp, Delaware) with 5 co-founders, each having 20% of the shares. Then an investor wants 30% of the company, which will leave each co-founder diluted to 14%. Besides...

asked Mar 27 '12 at 00:37
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Anon User
62 points

0 Votes
0 Answers
2.55K Views
Looking for specific suggestion regarding company shares

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? I just want to say that I've read a lot of threads regarding this subject, including the most popular one...

asked Mar 28 '12 at 14:38
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User1202888
1 point

2 Votes
2 Answers
3.72K Views
Co-Founder or First Employee ? How much equity?

Joined together to create a new venture with my ex-boss, we shared a great work dynamics and gelled well together, had complimentary skills & liked the idea and hence I decided to start...

asked Mar 31 '12 at 04:30
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Roby
11 points