How To Distribute Startup Equity (The Smart Way)

Great video! Helped a lot. Thank yiu

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

Thank you very much for the video. Please is it possible to get funding from someone for my company(start-up) without offering him/her shares ? Is there a way I could make arrangement with such person without him/her been in my shareholders list?

thank you bro,

Thank you.

Hello, your video was exactlt what i was looking for, wondering... i have a construction material production idea. In our market (i mean whole country wide) there is any other producer, every same products are imported from two neighbour countries. And yet the market estimate is 38mln USD. I already did all the research and feasability study an much more. Anyway next week i am going to pitch to my two target investors. One is my brother in law, other is my current boss? How should i do my pitch?

How do you share equity for a Sole proprietorship business

So do you pay the employee 60k a year and give them 2% equity? Like do you pay them out for that 2%? What can they do with that 2%?

Thank You

This guy is rocking that 2008 haircut

Hi, i am going to inevst 382 dollars in small business going to start. and my equity is decided 4 percent .total investment is 2000 dollars.small business.please advise

I have a question here. My friend is opening up shipping company aiming for 11 million to buy a ship to run. Bank loan him 10 million thus he still need 1 million. If I invest 200k, how much share shall I target to own?

the best startup video thanks

Great & succinct video.

In terms of advisers, how many advisers can one have? Assuming more than one adviser , should the founder make the adviser to know each other?

Look at that guy, he can't close that top button

AMAZING! Thank you. The BEST advice.

What does 1st Round of Funding mean? I’m starting my business with my savings and people who I hire on a contact basis keep asking to not pay me, but to invest in what I’m building. There are no partners or employees yet. How do I create shares for random people who just believe in me?

How do you issue that equity?

Hi Dan. Great video. A business adds new owners over a ten year span. The business changed value over that time. We need to figure out how to measure equity and share value ten years in. Who owns what percentage of the business? Is it share, stocks or equity we are measuring? Here is what I have and need advise on.

Person 1 started the business in 2012 and invested $25k. In 2018 he self evaluated the business at $144k, he added a new minority owner to the business for more capital and help. They bought in at $10k. A year later, he self evaluated the business at $200k, then added three more owners at in for about $8k each. We are struggling to figure out ownership. Some owners put in way more time and resources than others. How do set this up in an equitable way to keep everyone's stake fair?

Thanks for the video. So for example, If I have a startup project (a factory) cost of $90M and an investor will provide $20M and the balance is debt from the bank, how much equity is the best to offer in your opinion? thanks

Thanks and 💗💗 from Pakistan 🇵🇰

Hi Dan, I need your help to understand equity distribution for Series E Co.

If the total funding of the project is 1 million and if we are giving 15% to the investors. does it means that they are paying amount of 150000 ? then there is also time and dedication of the board member and the investors just paying the money which we are also paying same amount of money. so they must pay more than 150000 to get 15% of the project share right?. I mean for the project evaluation only the finincial part calculated or the time and dedication is also calculated?

Could you create a video explaining the process of actually issuing the shares. Are they issued as a pdf or on paper could you explain the technical part of issuing shares

So let's say if I give 10% equity for 1 million, does that mean that the investor has to give my 1 mil every year or its a one-time investment against the life time equity of 10%?

I want to build a small rocket to fly into space. I need a team of engineers.

what if 2 partners are in an Asian under developed country: one to manage coders, another to market platform (SaaS) and founder in US resident what should be split if founder is investor too for coders and all startup cost and risking their asset in US?

Thank you so much! Really practical advice. Are you an adviser yourself?!

Super great advice

Investors shares= ipo shares?

I was looking for this explanation video for past 2 hours. why no one talks about this

Sorry a newbie here. By % share of equity, do you mean profit sharing %? For example, investor 25% equity. Does that mean a 25% of profit sharing to the investors?

Thank you so much for this video. I was actually thinking about how to distribute start up equity for my start up which is still at the infantry stage and this video just came right through to assist.

Could you demonstrate in detail how you evaluate how much your worth is when raising capital before you sell a product?

On the second, third or so on investment rounds, do the primary equity holders give up a protion from their equity to the investors?

I need help, I have my software developed and team. I'm finishing up my pitch deck to add to our fundraiser campaign. Is there any way to book a 15-30 minute meeting with you? Thanks Dan

Thank you so much for this valuable video, I have an elementary question about it.
Should the founders issue the max allowed stocks from the authorized shares, which is 80% for their ownership and then sell from their own shares to the investors ? Or they should own for example 60% only and issue stocks for investors from the untouched authorized shares when raising funds?

how about angel investor who invests $50k into the company?

I help people/companies go public step by step, I realized some people have super great objectives but don't know where to start after their concept is complete and ready to get listed.

A well organized pitch deck is extremely important and part of the company's first impression, I can't emphasize this enough.
It's always fun to witness the beginning of disruptive startup greatness.

Hi thanks for this video. I have a startup business and an investor is really interested in my business. He can actually provide almost 80% of capital I need to grow my business. Can you give me the best share of equity?I still don't have enough knowledge for this that's why I still didn't accept his offer.

60% for founders, 10% for the team, 5% for the advisers, leftover (25%) is investors.

So when stock goes public where is that stock that people are buying coming from? The founders' cut?

Hi Dan, just your opinion, I want to offer a Sales Manager a lower Salary at the beginning with Decent cash payment at the end of the first year if we hit our targets, Alternatively the Sales manager can have Stock option instead of cash. But because those figures are so crucial for all things, most importantly the Angel investor, and being able to ease us into the series one for our 2nd batch of investment - I'm now thinking I should give both, but that seems mighty generous, just checking if this is overly generous or the norm, any advice would be helpful

thank you.

Great video Dan, explained perfectly, in fact, this has made my decision to vest more in Advisors who can help that 1st year for accelerated growth

First of all. That shirt looks great on you!. Thank you for explaining in a simple and straight up way

The dilution after seed rounds applies to founders only and not all the other buckets?

Thanks so much for this video!! Super helpful? I’m thinking about my initial team here... will be 3-4 people. should I bump up past 10% if I am not offering any kind of salary at first? Is 2-3% per person reasonable if there is no other money offered in the beginning? Thanks!

Dan, I really liked the video. I must say. I got a question. If new investor comes in , should I issue new shares or should I transfer the shares? Say , no. of shares in my company is 10000000 and If an investor bought 10% of my company. how much shares should I allocate to him?

Does a startup really need 5 advisors? giving up free equity to get guidance. Investors can't guide you well enough?

My brother built a partnership in Coffe roasting to global Market in Ethiopia. He wanted me to be part of the business but the share holder wants me just a team who owns one of the roasting facilities here in Us.
I was confused what percentage I must ask to promote the business here and do the logistic. Back home, the partnership agreements are vague so the discussion is awkward and not clear cut.