Will I be diluted? How can a founder agreement and full-time contract cohabit? [on hold]
-2
I have very basic knowledge regarding startup and company establishment. For the first time of my life I am proposed shares.
The facts:
- I am going to be co-founder level 1 of a Delaware corp startup/company.
- The company is in funding process and got only small percentage of the required fund.
- They want me to start working on a prototype for them part-time without getting salary before getting the full funding.
- They proposed to give me 2% of the shares with a founder agreement (with dilution allowed) as an incentive plan instead of a salary.
- This agreement defines I am a Contractor, not an employee and I need to work a minimum amount of time for them in the month. And they can review this time unilaterally later.
I know they will be fully funded very soon.
- What is the value of my 2% shares?
- What will happen to my 2% shares after the full funding and the registration of the company?
- What will happen to this co-founder agreement once I will be full-time employed once the full funding is reached?
Extra question: How a startup can exist, have a value, have shares, make contracts etc.. without being registered?
First edit to P. Hopkinson comment:
How much time are you expecting to work unpaid?
- That would be very part-time until the full-time employment (no more than a day per week)
- I might even not need to work at all before the full-time since I am very confident we are gonna get the full funding very soon.
- Nevertheless, nothing is written in the agreement, the vesting period is 2 years
How much do you think the company might be worth if it succeeds? How likely are they to succeed?
- The value of the 2% shares are fine right now
Effectively you would be an investor investing time rather than a worker working for salary.
- I see it exactly as it, it is a risk. I really believe there is a chance to succeed very quickly. Less than a year to deliver the product.
startup
asked 2 days ago
Alexis_FR_JPAlexis_FR_JP
1155
put on hold as unclear what you're asking by gnat, motosubatsu, sf02, jcmack, Rory Alsop 2 days ago
Please clarify your specific problem or add additional details to highlight exactly what you need. As it's currently written, it’s hard to tell exactly what you're asking. See the How to Ask page for help clarifying this question. If this question can be reworded to fit the rules in the help center, please edit the question.
add a comment |
-2
I have very basic knowledge regarding startup and company establishment. For the first time of my life I am proposed shares.
The facts:
- I am going to be co-founder level 1 of a Delaware corp startup/company.
- The company is in funding process and got only small percentage of the required fund.
- They want me to start working on a prototype for them part-time without getting salary before getting the full funding.
- They proposed to give me 2% of the shares with a founder agreement (with dilution allowed) as an incentive plan instead of a salary.
- This agreement defines I am a Contractor, not an employee and I need to work a minimum amount of time for them in the month. And they can review this time unilaterally later.
I know they will be fully funded very soon.
- What is the value of my 2% shares?
- What will happen to my 2% shares after the full funding and the registration of the company?
- What will happen to this co-founder agreement once I will be full-time employed once the full funding is reached?
Extra question: How a startup can exist, have a value, have shares, make contracts etc.. without being registered?
First edit to P. Hopkinson comment:
How much time are you expecting to work unpaid?
- That would be very part-time until the full-time employment (no more than a day per week)
- I might even not need to work at all before the full-time since I am very confident we are gonna get the full funding very soon.
- Nevertheless, nothing is written in the agreement, the vesting period is 2 years
How much do you think the company might be worth if it succeeds? How likely are they to succeed?
- The value of the 2% shares are fine right now
Effectively you would be an investor investing time rather than a worker working for salary.
- I see it exactly as it, it is a risk. I really believe there is a chance to succeed very quickly. Less than a year to deliver the product.
startup
asked 2 days ago
Alexis_FR_JPAlexis_FR_JP
1155
put on hold as unclear what you're asking by gnat, motosubatsu, sf02, jcmack, Rory Alsop 2 days ago
Please clarify your specific problem or add additional details to highlight exactly what you need. As it's currently written, it’s hard to tell exactly what you're asking. See the How to Ask page for help clarifying this question. If this question can be reworded to fit the rules in the help center, please edit the question.
How much time are you expecting to work unpaid? How much do you think the company might be worth if it succeeds? How likely are they to succeed? Your salary per hour will be chance_success*value_if_successful*0.02/hours_worked. Consider that this can (and will?) be further diluted and that there is a high level of risk involved. Effectively you would be an investor investing time rather than a worker working for salary.
– P. Hopkinson
2 days ago
updated my questions
– Alexis_FR_JP
2 days ago
This sounds like a terrible deal. I'd walk away. Don't bother negotiating with people who would put forth such a poor offer in the first place.
– Glen Pierce
2 days ago
add a comment |
-2
-2
-2
I have very basic knowledge regarding startup and company establishment. For the first time of my life I am proposed shares.
The facts:
- I am going to be co-founder level 1 of a Delaware corp startup/company.
- The company is in funding process and got only small percentage of the required fund.
- They want me to start working on a prototype for them part-time without getting salary before getting the full funding.
- They proposed to give me 2% of the shares with a founder agreement (with dilution allowed) as an incentive plan instead of a salary.
- This agreement defines I am a Contractor, not an employee and I need to work a minimum amount of time for them in the month. And they can review this time unilaterally later.
I know they will be fully funded very soon.
- What is the value of my 2% shares?
- What will happen to my 2% shares after the full funding and the registration of the company?
- What will happen to this co-founder agreement once I will be full-time employed once the full funding is reached?
Extra question: How a startup can exist, have a value, have shares, make contracts etc.. without being registered?
First edit to P. Hopkinson comment:
How much time are you expecting to work unpaid?
- That would be very part-time until the full-time employment (no more than a day per week)
- I might even not need to work at all before the full-time since I am very confident we are gonna get the full funding very soon.
- Nevertheless, nothing is written in the agreement, the vesting period is 2 years
How much do you think the company might be worth if it succeeds? How likely are they to succeed?
- The value of the 2% shares are fine right now
Effectively you would be an investor investing time rather than a worker working for salary.
- I see it exactly as it, it is a risk. I really believe there is a chance to succeed very quickly. Less than a year to deliver the product.
startup
asked 2 days ago
Alexis_FR_JPAlexis_FR_JP
1155
I have very basic knowledge regarding startup and company establishment. For the first time of my life I am proposed shares.
The facts:
- I am going to be co-founder level 1 of a Delaware corp startup/company.
- The company is in funding process and got only small percentage of the required fund.
- They want me to start working on a prototype for them part-time without getting salary before getting the full funding.
- They proposed to give me 2% of the shares with a founder agreement (with dilution allowed) as an incentive plan instead of a salary.
- This agreement defines I am a Contractor, not an employee and I need to work a minimum amount of time for them in the month. And they can review this time unilaterally later.
I know they will be fully funded very soon.
- What is the value of my 2% shares?
- What will happen to my 2% shares after the full funding and the registration of the company?
- What will happen to this co-founder agreement once I will be full-time employed once the full funding is reached?
Extra question: How a startup can exist, have a value, have shares, make contracts etc.. without being registered?
First edit to P. Hopkinson comment:
How much time are you expecting to work unpaid?
- That would be very part-time until the full-time employment (no more than a day per week)
- I might even not need to work at all before the full-time since I am very confident we are gonna get the full funding very soon.
- Nevertheless, nothing is written in the agreement, the vesting period is 2 years
How much do you think the company might be worth if it succeeds? How likely are they to succeed?
- The value of the 2% shares are fine right now
Effectively you would be an investor investing time rather than a worker working for salary.
- I see it exactly as it, it is a risk. I really believe there is a chance to succeed very quickly. Less than a year to deliver the product.
startup
startup
asked 2 days ago
Alexis_FR_JPAlexis_FR_JP
1155
asked 2 days ago
Alexis_FR_JPAlexis_FR_JP
1155
edited 2 days ago
Alexis_FR_JP
asked 2 days ago
Alexis_FR_JPAlexis_FR_JP
1155
asked 2 days ago
Alexis_FR_JPAlexis_FR_JP
1155
asked 2 days ago
Alexis_FR_JPAlexis_FR_JP
1155
1155
put on hold as unclear what you're asking by gnat, motosubatsu, sf02, jcmack, Rory Alsop 2 days ago
Please clarify your specific problem or add additional details to highlight exactly what you need. As it's currently written, it’s hard to tell exactly what you're asking. See the How to Ask page for help clarifying this question. If this question can be reworded to fit the rules in the help center, please edit the question.
put on hold as unclear what you're asking by gnat, motosubatsu, sf02, jcmack, Rory Alsop 2 days ago
Please clarify your specific problem or add additional details to highlight exactly what you need. As it's currently written, it’s hard to tell exactly what you're asking. See the How to Ask page for help clarifying this question. If this question can be reworded to fit the rules in the help center, please edit the question.
How much time are you expecting to work unpaid? How much do you think the company might be worth if it succeeds? How likely are they to succeed? Your salary per hour will be chance_success*value_if_successful*0.02/hours_worked. Consider that this can (and will?) be further diluted and that there is a high level of risk involved. Effectively you would be an investor investing time rather than a worker working for salary.
– P. Hopkinson
2 days ago
updated my questions
– Alexis_FR_JP
2 days ago
This sounds like a terrible deal. I'd walk away. Don't bother negotiating with people who would put forth such a poor offer in the first place.
– Glen Pierce
2 days ago
add a comment |
How much time are you expecting to work unpaid? How much do you think the company might be worth if it succeeds? How likely are they to succeed? Your salary per hour will be chance_success*value_if_successful*0.02/hours_worked. Consider that this can (and will?) be further diluted and that there is a high level of risk involved. Effectively you would be an investor investing time rather than a worker working for salary.
– P. Hopkinson
2 days ago
updated my questions
– Alexis_FR_JP
2 days ago
This sounds like a terrible deal. I'd walk away. Don't bother negotiating with people who would put forth such a poor offer in the first place.
– Glen Pierce
2 days ago
How much time are you expecting to work unpaid? How much do you think the company might be worth if it succeeds? How likely are they to succeed? Your salary per hour will be chance_success*value_if_successful*0.02/hours_worked. Consider that this can (and will?) be further diluted and that there is a high level of risk involved. Effectively you would be an investor investing time rather than a worker working for salary.
– P. Hopkinson
2 days ago
How much time are you expecting to work unpaid? How much do you think the company might be worth if it succeeds? How likely are they to succeed? Your salary per hour will be chance_success*value_if_successful*0.02/hours_worked. Consider that this can (and will?) be further diluted and that there is a high level of risk involved. Effectively you would be an investor investing time rather than a worker working for salary.
– P. Hopkinson
2 days ago
updated my questions
– Alexis_FR_JP
2 days ago
updated my questions
– Alexis_FR_JP
2 days ago
This sounds like a terrible deal. I'd walk away. Don't bother negotiating with people who would put forth such a poor offer in the first place.
– Glen Pierce
2 days ago
This sounds like a terrible deal. I'd walk away. Don't bother negotiating with people who would put forth such a poor offer in the first place.
– Glen Pierce
2 days ago
add a comment |
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How much time are you expecting to work unpaid? How much do you think the company might be worth if it succeeds? How likely are they to succeed? Your salary per hour will be chance_success*value_if_successful*0.02/hours_worked. Consider that this can (and will?) be further diluted and that there is a high level of risk involved. Effectively you would be an investor investing time rather than a worker working for salary.
– P. Hopkinson
2 days ago
updated my questions
– Alexis_FR_JP
2 days ago
This sounds like a terrible deal. I'd walk away. Don't bother negotiating with people who would put forth such a poor offer in the first place.
– Glen Pierce
2 days ago