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Results for: Equities

I don't think there's a right—meaning, sane—answer here. How much capital do you think you'll need over the next 4-5 years? Series A? Series B? So on? Some, but not all, institutional investors will take a look at a cap table made longer by crowdfunding the way kids look at a pool that's been pee...

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How did you come to the $10K number? Based on revenue? Each of your contributions? Tough to answer this without understanding if the app is on the upswing or on decline etc. So... Does he want 5% equity of the app or 5% residual royalties? My guess is that he wants to participate in the revenue...

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First, congratulations on your recent funding/recruitment successes! This is an excellent question, and a transaction I have been directly or indirectly involved with numerous times before. Each circumstance can be unique, the two most important considerations to look at as a starting point wou...

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Hi, great question. You determine the value of the business before the partner joins, then you determine the value of what they bring. You then issue new shares to them. I made this video which may clear things up a bit for you. https://youtu.be/1EjKjSAd1F8 And this one about share dilution: ...

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You are thinking about it wrong. Don't think of your organization as a pie. Think of it as a house. When you add an extension (say a new kitchen) to your house, the value of your new kitchen now accounts for a larger *percentage* of your house, more than it did before. But something else al...

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Thanks for asking this question, its a good one with little answers out there. Having been a phantom equity partner in a start-up myself, I would say phantom equity didn't give me the push to be all in as much as real equity would have. I never felt like a true partner. Reason being, the owner wa...

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Interesting dilemma! I’ve never managed staff on equity only but I have managed part-time remote staff and a large sales team which in itself, is a challenge! I might be wrong here but I’m assuming you’re running a start up or a young company if you’ve hired part-time remote staff on equity? ...

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Before we dive into the equity,salary and such. Motivation and retention begins with the CEO. Ask yourself what is the culture of the company? If you don't know anything about culture then start with the basics: 1. Do you value employee opinions? Do you ask for others opinions? 2. Do you encour...

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Some questions you'll want to answer before moving ahead: How strongly do you believe this idea can become a successful product? Why do you think they approached you? How comfortable do you feel running a company owned by someone else? What happened in your previous CEO role? What confidence...

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If they are offering equity as your payment then I'm surprised that they didn't come with a number. Or maybe they will. It's hard to give a firm answer because it all depends on how much money the two founders are investing on their own. If you say you'll invest equal portions then you can ask fo...

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