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...
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...
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: ...
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...
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...
Please provide me with more details and I will be happy to check if I can point you in the right direction. What is the tech? Defense of what? Cyber? What stage are you at? What is your background? Is the software ready? How was it written. So much missing info...
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...
Good Morning, Your question may appear to be a simple one. As a CPA, CGMA, and business performance expert for over 25 years now, I get questions like this from my clients often. Your options are not clear from your question, however, I will steer to you to where you need to look to determine ...
I am an investor and advisor and have been structuring deals like this for many years. You can provide equity in the parent if you do not spinoff, provided that the people you provide the equity to agree to it in advance and you comply with all existing shareholders agreements and securities laws...
You could: 1. make a connection between per project and equity allocation - so each time they complete a project, they get a small % of equity. Research has shown that people prefer small payouts than one big payout at the end (ppl can't postpone their desires...). 2. Keep them involved in the d...