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Clarity

Bradley Joyce

Dallas, Texas

Founder of Velocis, a leading web & mobile startup studio in Dallas, TX best known for incubating Gig Wage and Student Success Agency.

$3.33/min

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22 minutes
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Ruby on Rails Start-ups Social Media Ruby Startups Startup Consulting Tech startups and entrepreneurship Business Strategy Early-stage Startups SASS

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Founder of Socialyzer, a leading social media optimization and revenue performance management platform.

HTML, CSS, Ruby, Javascript

Building websites since 2004, web apps on Rails since 2005.

Founder of 3 companies. Have sold 2 web applications. Accepted into a Forbes Top 10 Incubator. Raised outside financing.

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Bradley Joyce answered

I'm a solo founder planning to do angel and A rounds. How can I plan eventual equity splits for investors, advisors, a cofounder, first hires & I?

The short answer here is that this is very situational stuff and not necessarily something you can have completely planned out in advance.

If you've already incorporated (c-corp) then you'll have authorized shares and issued shares (see http://startuplawyer.com/incorporation/how-many-shares-should-be-issued-to-founders-at-incorporation)

Any additional grants would then be dilutive.

In most cases, you'll want to create a 10% option pool for future employees. Co-founders that you would bring on will typically want common stock.

Advisors or consultants that are helping out for equity would typically receive option grants that come out of the 10% pool you set up.

Long story short, depending on your situation and needs there are A LOT of ways this could go down. I would recommend reading up more about these issues at http://startuplawyer.com/ (author is a personal friend and his site is packed with great info)

Hope this helps!

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Bradley Joyce answered

Is it normal for an Angel investment to consist of a loan note repayable at exit in exchange for equity?

This sounds like a "Convertible Note" which is fairly common, at least in the US. Here is a good definition: http://startuplawyer.com/startup-law-glossary/convertible-note

I'm not sure how these are typically structured in the UK so you'll definitely want to speak to a local lawyer about it.

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Member since May 2012