Equity Questions

When founders divide a startup's equity amongst themselves, are those numbers set in stone (ignoring future dilution)? I ask this because my co-founders and I are pondering whether we should...

Equity Shares

asked May 13 '11 at 04:29

A Fake Username
86 points

My co-founders and I plan to issue profit shares and voting shares separately. For example, I might receive 35% of the profit shares, and 15% of the voting shares. What disadvantages are there to...

Equity Shares

asked May 13 '11 at 05:13

A Fake Username
86 points

I began work with a small startup last year, working as a consultant. Consulting didn't last long because I saw great potential in the company and made it clear I wanted to be a part of it. I...

Equity Tax Shares Royalties

asked May 15 '11 at 13:38

Schneider
116 points

I may have the chance to be the first employee of a startup going to the YC summer 2011 program. The thing is I think they are planning to cover my expenses but not to actually pay me or offer...

Equity Payments Employees

asked May 16 '11 at 00:23

Andy Boot
228 points

I am being offered a 0.6% share in an early stage startup for being the lead iOS developer(probably the only iOS developer).The concept is good and the team consists of some smart people too.My...

Software Equity Iphone Partnerships

asked May 17 '11 at 15:12

Samyzee
16 points

My options (ISO's) in a privately-held (VC-funded) startup are slowly but surely vesting. Can I exercise the vested options? What does it mean to exercise options in a privately-held company? If...

Equity USA Stock Options

asked May 18 '11 at 00:59

Matt Solnit
123 points

While crawling the questions being asked here, I saw that the question of the office space seems to be very important for many founders. As an investor (in the most global sense), I think that...

Equity Office Space

asked May 3 '11 at 13:39

Sylvain Peyronnet
371 points

I'm a tech guy looking to join a company as a co-founder. Quite often companies are in various stages. For example for 2 different business offers, pre-seed/pre-series A: Lets say founder A,...

Co-Founder Founder Equity Compensation

asked May 3 '11 at 18:01

Daniel
157 points

We're planning on offering some key early employees equity in our startup, an LLC, in the form of ownership shares. The benefits include: - proportional sharing in distribution of profits -...

LLC Equity Valuation

asked May 5 '11 at 05:46

Karl R
113 points

I wanted to get people's feedback on what you think is a fair equity split for my given scenario. I currently have a product where I originated the idea, fund the development/hosting/creation of...

Equity

asked May 5 '11 at 17:10

John
161 points

I am seeking equity partners to invest in my restaurant. I am wondering how I can propose a deal where I would be able to keep majority ownership while not being able to put up more than 10% of the...

Equity

asked May 9 '11 at 05:04

Ryan
11 points

When vesting ownership shares to founders/employees, isn't a taxable event created without realizing cash income? In this case, as you build the company and create more value in the shares, don't...

Equity

asked Apr 26 '11 at 02:27

Ben Anderson
11 points

My apologies if this question has been asked before. I tried to find the answer reviewing other questions and still don't have the answer so here is the question(s): We are now setting up the...

Equity Legal Founders Vesting

asked Apr 28 '11 at 16:49

Miguel Buckenmeyer
482 points

When getting funding from family and friends, are term sheets necessary? The family member I've approached is more interested in becoming an investor, rather than owning convertible debt. Every...

Equity Investing Family Capital

asked May 3 '11 at 00:05

Shaun
71 points

When you are starting a new company, its often hard or impossible pay everyone for services they can provide. Some people may be willing to work with\help you build your dream in exchange for...

Equity Free

asked Apr 20 '11 at 03:48

Bryan Migliorisi
449 points

What are the advantages and disadvantages of dividing equity 49/51 vs 50/50 between partners? Edit: 51/49 feels wrong, but there may be some startup cases where it is good if you are the majority...

Equity Partnerships

asked Apr 21 '11 at 07:56

Pate
306 points

What is the difference between Series A, Series B and Series C investment for a startup? How does this affect salary and/or equity expectations if I am looking to join a startup in a...

Funding Equity Investment Compensation

asked Apr 23 '11 at 00:23

Nissan Dookeran
177 points

What is share dilution? How can I, as a past employee of a company where I exercised my share options, know if my shares are subject to dilution? How can I protect myself in future from share...

Funding Equity Investors Shares

asked Apr 23 '11 at 01:24

Nissan Dookeran
177 points

These days I am in process of raising 20k$ for my project (a facebook application), that requires at least 30k$ (10k of which I am able to come up with myself). When negotiating with an angel...

Equity Angel Investors Seed Funding

asked Apr 24 '11 at 17:27

User9950
31 points

Is there a requirement for such stuff where a co-founder actually have to invest a proportional amount of money when setting up their startup as a business/company? What if they just come with...

Equity Investment

asked Apr 11 '11 at 12:35

Equino X
111 points