Equity Questions

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

2 Votes
3 Answers
4.52K Views
How should you value a SaaS company?

Given the following assumptions: Assume total investment (founders + seed) to a SaaS company is 100K After one year, the monthly net profit is 5K, and it is growing at around 10% monthly. What...

asked Jul 5 '11 at 02:20
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Jack
26 points

0 Votes
1 Answers
1.87K Views
Employee Payment - From an Investor's Prospective

In the development stage of launching a start up. I am initially outsourcing the development as I am not located in a place where there is an abundance of programmers. The dev timeline is 6 weeks....

asked Jul 5 '11 at 12:41
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Eric Littleton
107 points

13 Votes
9 Answers
6.44K Views
Should we award equity based on specific performance metrics?

My team and I are nearing the launch of our initial product this August. We are wanting to develop a metrics-based system that will be implemented upon product launch that will determine founder's...

asked Jul 6 '11 at 06:27
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Travis Truett
127 points

1 Votes
3 Answers
5.07K Views
How much equity should I get as tech-cofounder?

Possible Duplicate: Forming a new software startup, how do I allocate ownership fairly? I would be the sole on-site tech person, along with being 'tech-co-founder' There are two...

asked Jul 7 '11 at 03:26
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User9968
229 points

1 Votes
2 Answers
2.75K Views
How dividend payments work?

So let's make an example story: I'm the founder and the only developer of a web startup. Currently there is no one else other than me in the company. I've added a sales guy, wishing to give him...

asked Jul 7 '11 at 11:57
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Ryan
139 points

0 Votes
3 Answers
2.17K Views
Measuring the benefit of internet marketing specialist

Being in the last stages of completing the development of a video based social network, my partners and I have interviewed a few internet marketing specialists for promoting us. After receiving...

asked Jul 8 '11 at 17:34
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User11829
1 point

0 Votes
4 Answers
3.4K Views
Equity distribution among Co-Founders Pre-Money

I teamed up with a student at school to help him launch a new business. The student I teamed up with has been running a legacy company for the past two years, which I am also involved in. The new...

asked Jul 9 '11 at 03:35
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Dem
1 point

2 Votes
3 Answers
2.93K Views
Why split equity at the beginning?

One of my co-founders is suggesting that we split equity based upon the number of hours each person puts in until we obtain funding and begin drawing salaries. In other words, each person would be...

asked Jun 23 '11 at 10:08
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A Fake Username
86 points

3 Votes
2 Answers
2.67K Views
What is the value of my IP (in terms of equity)

Here is the scenario: I am the ceo/founder of a company that will be launching a website/application. The amount of cash I have invested thus far is less than 3,000. I am currently seeking...

asked Jun 28 '11 at 13:50
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Eric Littleton
107 points

1 Votes
2 Answers
2.56K Views
CEO equity when new investor comes along

I'm the co-founder and Managing Director of a start up backed by angel money. There are three partners. I run the day to day business and moved it from launch to major player in the market in a...

asked Jun 30 '11 at 01:46
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Michael Canfield
6 points

5 Votes
3 Answers
2.96K Views
Getting VC funding but one partner doesn't want to dedicate full-time

I would really appreciate your guidance and advice. Great community. I am a co-founder of a two year old start-up that is finally getting proper VC funding ($1MM injection). Currently, the...

asked Jul 1 '11 at 05:09
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Sbeekar
26 points

3 Votes
5 Answers
3.75K Views
Equity stake for advisor who came up with startup idea?

I realize this has been addressed in various forms before but I feel this case is unique. How much equity would you give to a friend who came up with the idea for a startup but is voluntarily...

asked Jun 14 '11 at 20:29
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Johnster
21 points

2 Votes
2 Answers
2.97K Views
Need simple pre-launch website to attract mgmt. team, investors, and co-marketing alliances

I am looking for a simple website solution for my pre-launch (and pre-funding) start-up to do the following: Introduce the business without totally giving the concept away. Have a web address as...

asked Jun 15 '11 at 00:16
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C. Scott
85 points

1 Votes
1 Answers
2.42K Views
Bringing on equal partner after starting solely bootstrapped?

I came up with an idea for a startup, and after trying to start other ventures with non-paid partners I knew the only way to get this done right was to hire a developer straight up to code the...

asked Jun 15 '11 at 01:19
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Patrick
6 points

2 Votes
1 Answers
2.69K Views
How do I figure out how much stock to give a developer working short term in exchange for equity?

I recently participated on a team with a developer at a hackathon. The person has their own freelance business, so unlikely to join fulltime later. They expressed interest in helping with my...

asked Jun 18 '11 at 03:31
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Anonya
11 points

3 Votes
2 Answers
2.91K Views
How much equity to give to a sales/business guy?

I'm a web developer running a startup in development and i'm looking for a sales/business relationships guy who can do marketing and contact businesses that we'll promote their products. How much...

asked Jun 19 '11 at 20:52
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Ryan
139 points

2 Votes
1 Answers
2.8K Views
Start-up team organization, shares and duties. Advice needed

We are a group of 5 people working on an idea for a start-up. The aim is to find an investor that would allow us to develop the project fully. Now we're just at the idea and presentation stage. 3...

asked Jun 19 '11 at 22:49
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Giovanni
11 points

3 Votes
3 Answers
3.9K Views
If I launch a new division within my employer's company, should it be treated as a separate startup?

I've been working for my current employer for the past several years as CTO. I recently pitched them on starting a separate division that is more entrepreneurial and experimental to spin out...

asked Jun 20 '11 at 18:54
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Adam
16 points

1 Votes
4 Answers
5.09K Views
5 Co-Founder Dilemma Regarding Roles & Equity

We have a company with 5 co-founders and are having some serious issues with work process. We started with 3 cofounders and just assumed we'd do an equal equity split without thinking it through....

asked Jun 21 '11 at 04:55
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Marco
6 points

1 Votes
1 Answers
2.58K Views
What would be a reasonable equity when you execute on some one else's basic idea for less than market salary?

I am in some what a unique situation. I work for a friend owned software services company which has only 1 share holder - Founder & CEO. I joined them to execute on a product idea that the...

asked Jun 22 '11 at 09:22
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Bsk
6 points