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How To Split Equity In A Startup The Right Way

YoungUpstarts

Before embarking on the daunting mission of equity division, understand which trajectory suits your startup. Here's a comprehensive overview of how to split equity among various stakeholders of a startup. Others startup advice startup equity

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New Ideas On Structuring Equity Incentives

YoungUpstarts

Sizing an equity pool correctly is a delicate balancing act – and one that founders often get wrong without realizing it. The post New Ideas On Structuring Equity Incentives appeared first on Young Upstarts. Professionalisms equity equity financing Louis Lehot managing equity

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What Is Equity Crowdfunding

Gust

With equity crowdfunding, individuals invest in startups and […]. The post What Is Equity Crowdfunding appeared first on Gust. When you hear the word crowdfunding, the first image that jumps to mind is Kickstarter. We all know how this crowdfunding site works.

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5 Equity Crowdfunding Reflections Before You Sign Up

Startup Professionals Musings

Most of the experience so far has been cash versus the equity feature defined by the JOBS Act – Equity Crowdfunding (Title III) , introduced back in 2016 with 685 pages of rules. In equity crowdfunding, no investor is representing their own interest.

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The Significance Of Equity And Diversity In Education

YoungUpstarts

Regardless of the setting in which you teach, valuing equity and diversity will enrich the learning experience for everyone. The post The Significance Of Equity And Diversity In Education appeared first on Young Upstarts. Others diversity education equity

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Techstars Foundation Accelerate Equity

Feld Thoughts

The Techstars Foundation recently announced a new program called Accelerate Equity. Through Accelerate Equity, the Techstars Foundation identifies early-stage nonprofits and ideas to empower and support underestimated entrepreneurs. Diversity diversity equity Philanthropy techstars

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Vehicle Equity Loans In Missouri

YoungUpstarts

The post Vehicle Equity Loans In Missouri appeared first on Young Upstarts. Getting a car title loan in Missouri is easy, but it can be difficult if you choose the wrong company. Here are some tips. Others car title loan loan

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Early Stage Advisor Equity Grants

Eric Friedman

I have been thinking about early stage equity and advisor grants for some time, including a post in 2016 , that I rely on and wanted to revisit. If you are looking for a primer or how much early stage equity to grant to advisors, this is it. 25% as equity compensation.

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How to Achieve Pay Equity Among Employees

The Startup Magazine

What is Pay Equity ? Pay equity is the principle that employers should pay employees equally for doing comparable work, regardless of their gender, race, or other protected characteristic. This article explores how to achieve pay equity among employees.

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How Startup Valuations are Driving Company Equity

ReadWriteStart

With the rise of startups and growing businesses , it has become more critical for investors to have a thorough understanding of equity to be aware of all of the advantages they are receiving from the companies they have invested in. What is Company Equity? Types of equity.

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Equity Investment Platform Preparation Best Practices

Startup Professionals Musings

If you are one of the thousands of entrepreneurs who need equity funding to get your startup going (no loans to repay), you are probably overwhelmed at the prospect of finding, contacting and pitching to the huge number of qualified angels and investment groups around the country. Startups that have a name but are not incorporated have no credible basis for an equity investment. crowdfunding entrepreneur equity investment platform startup

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Some Good Startups Don’t Qualify For Equity Investors

Startup Professionals Musings

Angel investors and venture capitalists don’t make equity investments in nonprofit good causes. What options do they have available to them, since they can’t sell a share of the company (no equity investment)? There is no discussion of equity, or return on investment. Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. equity nonprofit philanthropy section 501(c)(3

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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. Each co-founder should get equity for value, based on these key variables: Lived a key role in a previous startup. Major equity in a startup that goes nowhere is not my idea of fun.

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Mark Hauser’s Hauser Private Equity Spearheads Major Deals in Industrial Sector

The Startup Magazine

Within private equity there are certainly sectors that drum up more attention than others. Private equity investments offer access to growth in more scaled businesses. Another frequent partner for Hauser Private Equity is the Santa Monica-based Clearlake Capital Group, L.P.

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4 Tips for Developing Brand Equity

Our Own Start-up

As you develop your brand identity, make sure you follow these four steps to build brand equity with your target audience and drive more business through marketing efforts in the future. The post 4 Tips for Developing Brand Equity first appeared on Our Own Startup.

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How to split startup equity between startup founders when starting a new business

The Startup Magazine

Equity distribution among co-founders may be a complex procedure while starting any business. How you split founder startup equity can be even harder for a tech startup due to different roles and contributions from the founders. What is the equity structure of a startup?

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Protected: Techstars Foundation Accelerates Equity

David Cohen

To view it please enter your password below: Password: The post Protected: Techstars Foundation Accelerates Equity appeared first on Hi, I'm David G. This content is password protected.

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Startups Should Be Responsible for Explaining Equity to New Employees

View from Seed

When someone goes to work for an early startup, the compensation package general includes an annual salary, health insurance, and, instead of fixed-cost performance upside, a percentage of unvested options to purchase equity in the company. Of late, I’ve encountered numerous potential startup candidates and newly hired employees who have no idea what their equity means. It falls on the hiring company to thoroughly explain equity options to their new employees.

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Techstars Equity Back Guarantee

Feld Thoughts

Today Techstars announced an “ equity back guarantee ” for any company that goes through the Techstars program starting in 2015. One day we started bouncing around the cliche “let’s put our money where our mouth is” which quickly morphed into “let’s put our equity where our mouth is.” So we decided to launch an equity back guarantee. The post Techstars Equity Back Guarantee appeared first on Feld Thoughts.

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How Leaders Can Close The Gender Equity Gap That Remote Work Is Widening

YoungUpstarts

The post How Leaders Can Close The Gender Equity Gap That Remote Work Is Widening appeared first on Young Upstarts. Christena Garduno of Media Culture shares some tips for company leaders on how they can address gender bias toward women working remotely.

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Private Equity Due Diligence: Are You Missing This Huge Opportunity?

YFS Magazine

Most private equity firms fail to focus on the sales team of their target company. Grow Marketing & Sales due diligence investing investment strategies private equity sales sales tipsTo assess sales force potential—take three steps.

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A Conversation With Dan Caruso About Gender Equity at the Boulder Country Club

Feld Thoughts

The past few months’ events have led us all to soul search on equity, with the primary focus being racial equity. They seemed surprised that this would be viewed as a gender equity matter. They are positioning this as a golf tee time preference instead of a gender equity issue.

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7 Equity Crowdfunding Risks Feared By Many Investors

Startup Professionals Musings

In fact, there are many types of crowdfunding, including donations, reward, pre-orders, loans, and equity. Professional investors, and more serious entrepreneurs, are most interested in money for ownership of a portion of the business (equity), and equity crowdfunding is still a small portion of the total (less than 10 percent), but growing. crowdfunding equity funding qualms startup

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The Racial Equity Ecosystem Pledge

Feld Thoughts

I’ve agreed to: Do a monthly podcast called Equity.District with Rodney on racial equity in entrepreneurial ecosystems and other issues around racial equity in entrepreneurship. The post The Racial Equity Ecosystem Pledge appeared first on Feld Thoughts.

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Read This Before Using Home Equity for a Startup

The Startup Magazine

Using that home equity for a startup certainly looks enticing right now, doesn’t it? The Amount of Equity. Do you have significant home equity for a startup? It’s tempting to look at $20,000 or so in equity and think every little bit counts.

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Dividing Equity among Co-founders

The Entrepreneurial Mind

There is no one best way to divide equity among co-founders and set founder salaries. Keep the equity equal among founders and keep your base-salaries the same. I am generally an advocate of one for all and all for one.

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What Some Are Using Home Equity Loan/HELOC Proceeds For

YoungUpstarts

Home equity loans and HELOCs provide a faster financing opportunity for consumers. A spouse or child of an individual who needs assisted living services uses the equity built-up into the home to cover the costs. Others finance matters HELOCs home equity home equity loans personal financeThe products offer immediate payments for any purposes without restrictions.

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New Venture Equity As Compensation Is A Long-Term Bet

Startup Professionals Musings

It never hurts to ask in a job interview what stock options are available, and don’t fall for the offer which promises to “work out the equity terms later.” Any offers of equity compensation before the first round of institutional capital should be considered purely speculative. Wouldn’t you like to be one of the lucky people who joined Google and Facebook when these were startups, and now be a multi-millionaire or better?

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Diversity, Equity, Inclusion Solutions (DEIS) Practicum

Feld Thoughts

Please join us for the Diversity, Equity, Inclusion Solutions (DEIS) Practicum. The post Diversity, Equity, Inclusion Solutions (DEIS) Practicum appeared first on Feld Thoughts.

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Are You Getting Your Fair Share Of Startup Equity?

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. Each co-founder should get equity for value, based on these key variables: Lived a key role in a previous startup. Major equity in a startup that goes nowhere is not my idea of fun.

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Nonprofit Diversity, Equity, and Inclusion: Key Issues for Today

Board Effect

People generally like to be served by people much like themselves, which is the primary reason for all nonprofits to focus heavily on diversity, equity, and inclusion. Are Nonprofits Making Progress in Diversity, Equity, and Inclusion? Defining Diversity, Equity, and Inclusion.

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A VC Puts On His Equity Crowdfunding Hat

YoungUpstarts

It’s been about three months since equity crowdfunding was opened up to all Americans. This change means that virtually any individual, not just the wealthy, will have opportunities to make equity investments in early stage companies. The entrepreneurs I mentor ask me frequently about equity crowdfunding. If I were an entrepreneur seeking funding, here are some of the things I would think about in considering equity crowdfunding as a fit for my company: 1.

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Progress on the Discussion Around Gender Equity at the Boulder Country Club

Feld Thoughts

After plenty of feedback and activity, I’ve decided to take down the post from last week titled A Conversation With Dan Caruso About Gender Equity at the Boulder Country Club. While often difficult to sort through and resolve, I think it’s vital to address equity issues at all levels.

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What Your Nonprofit Board Should Know About Pay Equity  

Board Effect

We’ll review the challenges with pay equity and offer ways your board can improve it. Racial Equity in Nonprofit Compensation . Racial equity has been an issue in business, society, and nonprofits. Ultimately to achieve pay equity, nonprofits must also achieve racial equity.

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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly. As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Sometimes co-founders put off the equity split question for some time.

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Texas Gets A New Tech Equity Program

Austin Startup

Texas Gets A New Tech Equity Program was originally published in Austin Startups on Medium, where people are continuing the conversation by highlighting and responding to this story. tech texas equity diversity-and-inclusion

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Mexican fintech startup Stori reaches unicorn status with $50M equity raise

Lightspeed Venture Partners

The post Mexican fintech startup Stori reaches unicorn status with $50M equity raise appeared first on Lightspeed Venture Partners

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CMO CTO COO Equity and Compensation

SoCal CTO

I was just asked about a particular startup situation (seed stage, CMO hire, non-founder) and particularly what compensation and equity is appropriate. I know a lot more about CTOs specifically CTO Salary and Equity Trends 2009-2011 , Visualization of Startup CTO Equity and Salary Data , Startup CTO Salary and Equity Data , but I've previously written about the issues with Equity for Early Employees in Early Stage Startups.

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How does equity dilution work for startups?

Gust

Equity dilution works when the same pie is divided among more people. Over time, other people receive pieces of equity in exchange for work (employee stock options), money (seed, angel and venture investors), services (attorneys, directors, etc.). Because the total percentage of equity will always equal exactly 100%, every time anyone gets another piece, by definition it “dilutes” all of the previous equity holders.

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Equity-Only CTO and Equity-Only Developers

SoCal CTO

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. However, when I told him that the level of engagement required from me and the fact that equity-only development was required, he seemed to be a bit offended. There are cases where I will do equity-only deals.

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The Ultimate Small Business Guide to Brand Equity in 2022

crowdSPRING Blog

Brand equity is the value premium a brand has in the minds of consumers. Learn why brand equity is important, and how to improve and measure it. Brand Identity Growing a Business Starting a Business Startup Marketing Startups

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8 Secrets for Maximizing Startup Equity and Control

Startup Professionals Musings

Bootstrapping avoids all the cost, pain, and distractions of finding angels or VCs, and allows you to keep control and all your hard-earned equity for yourself. startup control equity bootstrapping Rich Christiansen business When someone asks me for the best way to fund a startup, I always say bootstrap it, meaning fund it yourself and grow organically.

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10 Partner Qualities to Test Before Sharing Equity

Startup Professionals Musings

entrepreneur startup co-founder partner equity businessA while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.” The feedback was good, but some readers asked me to be a bit more specific on attributes that might indicate an ideal startup partner. Even if you are looking in all the right places, it helps to know what you are looking for.

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