You will find a lot of different views on equity split. I haven't found a silver bullet. My preference/experience is for: 1. Unequal shares because one person needs to be the ultimate decision maker (even if it's 1% difference). I have found that I have never had to use that card because we are ...
There are lots of great companies that make a profit while helping others. Many times, these companies are formatted as a pair of companies. For example: 'Helpco is a not-for profit corporation that does X and donates proceeds of it's activities to Y.' What is not part of the headline is that ...
In this business environment, a “corporate buyer” will be looking at your net income and value you based on a multiple of such. For example if the company generated $500,000 but only earned $75,000, you may be looking at a value of $200-$300,000 from a corporate buyer. It also depends on whether ...
I have lost passion at least 100 times. It happens and the situation you find yourself in can make it challenging for you to care. I totally get that. If you are planning on getting out, I would try to position yourself so you have some time to regroup. If you are in a position to do so, I would...
The biggest question you'll have to answer at this point is whether you and the founder can get along. You've already highlighted issues with the founder but does this bother you? Are both your goals aligned and do your values agree with him/her? In a previous experience, I brought someone on w...
A co-founder is a long-term relationships that should be built on trust, and passion, and time... time to fight, time to recover, time to build rapport. Ultimately, your co-founder shouldn't be based on *any* specific idea, because the two (or three?) of you could work on anything you are all pas...
You should never bring anyone on the team unless you feel they are awesome and will add value. I believe the first 12 team members will dictate the success of the company. That being said, you can bring in team members and give them equity that vest over 4 years, so that there is no risk to you...
A private equity company can offer any combo of preferred shares, warrants, options, or convertible note. They are like any other investor and can pick and choose, especially if they think you may be desperate for money. If you have more breathing room, and your deal is solid, consider shopping...
You may want to look at other lenders and options. See if you can find one that will allow you and your friend to set it up the way you described. Another option is to look for private lenders to fund your deals. Hope that helps!
A couple of things: 1) Picking a co-founder should be treated as seriously as picking your wife or husband. So the best way to avoid conflicts is to really date as long as possible. 2) 50/50 splits almost *never* work between co-founders. Unless you are already very close friends with a lot o...