Should I give away equity in my business

[2DUM2TAP]

Having someone who is also invested in the success of the business greater than just a pay cheque isn't a terrible idea.

But you do not give them equity. They earn it or pay for it.

 

[therealdope]

Without, within the legal exemptions that exist within the Canadian market.

Just as I figured. You guys are a dime a dozen and naive companies keep engaging guys like you.

 

[MikeMcMann]

Just as I figured. You guys are a dime a dozen and naive companies keep engaging guys like you.

Haha.

Ouch your assumptions really cut me to the bone and hurt my very successful practice. I'm an Operator and not a Finance professional and i write the first investment cheque before asking if others want to participate. I also, usually, help in operationalizing the companies I invest in.

I've raised over $200MM into various Canadian startups two of which have gone public and achieved more than $100MM valuations and we've sold two of the companies privately. My Rolodex of private high net worth investors are always willing to look at any other company I am getting involved with and putting my own money into and investing along side me. I'm 50 years old and am looking to retire in the next 2-3 years if we are able to take the latest company I am involved with public and I've been slowly stepping more and more away the last 3 years and traveling the world looking for my second home (winter home) which I have detailed some of my travels here on this forum.

Ya but man you cut me to the quick with your sherbro condemnation. Not sure how I will go on with my day today. lol.

 

[90 50]

So im confused, you say he’s on vacation, from another job or from you?

Is he a commission only sales guy now and somehow trying to say giving him 10% of the company will make him work more?

Or is he a high profile salesman working for someone else and this is what it would take to bring him on board with you?

Is he gambling he will lose out on the type of sales he gets routinely right now where he is, for a short time while he helps build yours up but wants a piece of the pie first??

There’s some very important info we are lacking here, but generally speaking never ever give up equity if you don’t have too.

You could possibly give stock options, with a restricted time period , so he has a timeline and reason to push on to make those options worth more, if he fails you and they are worth less he’s fucked.

If you don’t want to throw out more details on line shoot me a pm and I’ll give you some more directed opinion on how I would handle it.

I’ve been absolutely screwed before on some deals that “sounded good” before I really new better and have some insight on that too.

 

[Deleted member 409801]

Don't go into business with someone unless you're ok with not being friends any longer. Business/friendship dynamic is typically not a good one.

 

[Bitcoin]

So im confused, you say he’s on vacation, from another job or from you?He is on vacation from his current job which has nothing to do with my business.

Is he a commission only sales guy now and somehow trying to say giving him 10% of the company will make him work more? no he works in sales for another company but with a high base

Or is he a high profile salesman working for someone else and this is what it would take to bring him on board with you? yes

Is he gambling he will lose out on the type of sales he gets routinely right now where he is, for a short time while he helps build yours up but wants a piece of the pie first?? Correct

There’s some very important info we are lacking here, but generally speaking never ever give up equity if you don’t have too. That's what everyone is pretty much saying.

You could possibly give stock options, with a restricted time period , so he has a timeline and reason to push on to make those options worth more, if he fails you and they are worth less he’s fucked. I don't have the option of stocks. I'm not some giant company.

If you don’t want to throw out more details on line shoot me a pm and I’ll give you some more directed opinion on how I would handle it. Ok I will do so. I appreciate it.

I’ve been absolutely screwed before on some deals that “sounded good” before I really new better and have some insight on that too.