Much like negotiating a salary or company valuation, your objective is not necessarily to assign the perfect value. Your objective is to add a highly motivated partner to your business, feel great about it, and get to work on the important stuff. You want to mitigate the possibility for resen...
Investment, would love to help you out if you send me over your Pitch Deck on a call!
You might be somewhat in trouble. You'll want to consult a lawyer, not to be adversarial, but rather to ensure you do things that are legal and are best from a tax-consequence perspective. You can't back-date option grants or stock grants, for example. There are recent scandals reinforcing tha...
After shepherding 300 equity crowdfunding raises through our platform I'd say all of them have a higher valuation. Reason is it is the entrepreneur that is calling the shots. It is the entrepreneurs offer on their terms on an equity crowdfunding platform. Once you get outside investors involved...
This is an incredibly convoluted scenario that I would suggest is likely not worth the trouble. Let's first start with the equity. Let's assume that the current value of the domain you wish to acquire is $40,000. They want $20,000 and 2% of your company. For the example's sake, let's also ass...
For a technical co-founder, the minimum should be 33%. If you've been paying him, there is no way he should be 50/50 but how to determine the exact number is a calculation of a lot of variables that are impossible to answer without knowing more about your situation. Most investors want to see a...
You should always give someone what they deserve. Never more and never less. Most people don't know how to do this so they guess. They try to predict the future or they look for rules of thumb or they try other ways of guessing. Kind of like you are doing now. The best way to determine this is ...
Hi there, I did this in my last company. If you are a c-Corp then you can issue traditional shares to consultants. For other forms such as LLC or s-Corp it’s much more complex. So assuming you are a c-Corp, then you need a legal document called an option plan that reserves the shares for options...
You use the title co-founder, which indicates a partnership and mandates that the tech hire (I'm assuming is the CTO) be provided with the perks and benefits of other co-founders. If you are using the term co-founder loosely and there is no formal co-founder designation in place, then wait 6 mont...
Greater risk = greater equity. How likely is this to fail or just break even? If you aren't receiving salary yet are among 4-6 non-founders with equivalent sweat investment, all of whom are lower on the totem pole than the two founders, figure out: 1) Taking into account all likely outcomes, w...