article thumbnail

5 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

So, the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone. Now comes the reality check.

Equity 99
article thumbnail

Equity-Only CTO and Equity-Only Developers

SoCal CTO

And I tried to evaluate the idea and figure out: What did the founder really need here? Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). And he was still in the process of raising additional capital, so it was equity only. Was it a Startup Founder Developer Gap ?

CTO Hire 241
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 Criteria For Splitting Equity In Your New Venture

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone. Now comes the reality check.

Equity 95
article thumbnail

5 Keys To Negotiating Your Fair Share Of Any Startup

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone. Now comes the reality check.

Startup 174
article thumbnail

The best advice startups will never follow

Berkonomics

The problem, of course, comes if the business fails. Do take loans from sophisticated investors only after you have tried everything to get them to purchase equity…. Even if we don’t seem to get your brilliant idea and buy into its value, we may be comparing it to previous lost investments or industry experiences far beyond yours.

Startup 317
article thumbnail

CTO Equity - Negotiation After Funding

SoCal CTO

During that time one of the founders had mentioned that for the initial agreed time (3 months, equivalent dollars could be translated to 2% of equity but no agreement was reached at that time). I tried to argue that the equity should be what it was at the time I joined and discussed but there was no formal agreement at that time.

CTO 167
article thumbnail

CTO Equity - Negotiation After Funding

SoCal CTO

During that time one of the founders had mentioned that for the initial agreed time (3 months, equivalent dollars could be translated to 2% of equity but no agreement was reached at that time). I tried to argue that the equity should be what it was at the time I joined and discussed but there was no formal agreement at that time.

CTO 150