STARTUP EQUITY - Who Gets What and Why? How does it work?

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Күн бұрын

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If you are planning to launch a startup then knowing about equity is a must!
In today's video, I will be breaking down to who you should give equity in your business and how it can be highly beneficial for growth.
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00:00 - Intro
01:22 - Why should you give equity and who should get it?
06:27 - How much equity should you give away?
07:59 - My personal benchmark
09:00 - Industry benchmarks
10:29 - Mechanics of equity
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Пікірлер: 30

@JG-no4qr 9 ай бұрын

Two questions- how do you determine what the actually equity of a small business is? What is the equity based on, the amount of money the business has in its bank account? How do you pay investors based on it? Shares- Can an LLC distribute shares? If not, how do you measure equity. In percentage points?

@whistlingmeerkat 2 жыл бұрын

Thank you, this is really great and super helpful.

@mraa4950 4 ай бұрын

Very well presented . I have no question ! Thanks you .

@interiorinsightsbyraj 11 ай бұрын

Good video. Keep it coming

@brunonhandu9927 Жыл бұрын

Thanks a for the breakdown, you guys are really helpful 😎

@wearenocode Жыл бұрын

Thanks we really appreciate your feedback

@yasmine-irene4127 2 жыл бұрын

Wow, thank you

@wearenocode 2 жыл бұрын

You are welcome! Hope it was helpful.

@aady392 3 ай бұрын

Thank you for this informative video. One query - what if there is no vesting clause in Equity Agreement or SHA, in that case will 100% shares be considered vested immediately after agreement?

@joshfarrington 2 ай бұрын

Something I've never understood (and am currently seeking an answer for)... while our founders and employees shares are vesting, where do they sit? Who owns/holds them during this time? I assume they are issued and held somewhere while vesting, and that companies aren't just issuing more shares each month? Any help legends?!?

@vitali7216 20 күн бұрын

They sit with the entity that has the right to hold on to them if they fulfill the obligations

@blain5827 Жыл бұрын

So what is the motivation for an employee to remain after fully vested other than to remain and contribute?

@nickgood6088 Жыл бұрын

I think after 4 years you'd probably have a much higher salary than at the beginning, but I would think that many companies would offer hires like this refreshers so they continue vesting equity.

@wearenocode 5 ай бұрын

Time to negotiate more shares or salary or change companies if you ask me. It really depends if/how much you like your job.

@suicidequad 3 ай бұрын

you are taklking about percentages of shares with possible dilution in the future, correct? does that include voting rights?

@collinsabaya Ай бұрын

yes it does

@_luka_bagdavadze 5 ай бұрын

What happens to employ 5% when we go to seed round and sell 10% of the company? Do they still have 5% or their equity gets reduced to 4.5%?

@wearenocode 5 ай бұрын

Yes, usually everyone goes through dilution and your calculation is pretty close. You own a smaller % of a larger pie. The value of your shares is usually a lot higher. Think of it like owning 5% of a 10 million dollar company vs Owning 4.5% of a 50 million dollar business.

@mrmatias2618 4 ай бұрын

Please Lord Jesus bless this channel, allowing it to reach over One Millions subscribed in less than 2 years. Allows this man works to be fruitful, in Jesus name, amen. That is the only thing I could think of after being served by your God's gift. Keep it up brother.

@wearenocode 4 ай бұрын

Amen brother! Thanks for reminding me why I do what I do.

@theo.n.e.records 28 күн бұрын

How does this translate to a nonprofit?

@Guy5Digital 11 ай бұрын

I was offered a buyout for an online company I own, cash + ($20,000 equity of their $2.5M valuation). For the life of me I can’t understand what happens if I pull the trigger on accepting that offer. Does it sit and accumulate value over time if they do well? Can I eventually cash out? Do I receive payments quarterly? Any help would be appreciated.

@wearenocode 5 ай бұрын

You get a share of their company but it depends on how well the company does. Also is it currently overvalued/undervalued? It's good to get some cash and some shares to hedge your bet in case the company goes down.

@wearenocode Жыл бұрын

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@aasthatyagi3001 3 ай бұрын

Hey, kindly guide me. I'm starting a company based on retail. Idea was mine, I'll be CEO snd "brain" of the company. But i don't have money to invest. I've hired a guy as COO , he'll invest $13,250 in my company along with his efforts. I won't give him salary even i won't take salary either. So, my business partner is partially investing and I found an investor, he's willing to invest $30k . My startup is in "pre -seed stage" right now! Now, kindly guide me, how much %ge of shares I should give to my COO who's also my co-founder and investor. But I'm "main" in this company, without me it won't run and I want majority shares as CEO and main founder

@aasthatyagi3001 3 ай бұрын

Plus, there would be 50% profit sharing between me and my business partner (COO) . I'm confused how much %ge share, I give to my business partner as well as investor for the amount of money they're investing in pre -seed stage

@slysoilearth 12 күн бұрын

Your partner dwarves 30% if they are willing to stay with you from the start