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We have a few programmers in house but when we have to we outsource to a NJ based Software Development company - www.BetaBulls.com, their leader Sree is amazingly talented and well adapted to working with startups as his niche market. I know they have taken clients on equity before but is always ...

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Depends. Case 1 : You want majority shares to be within your close circle. Well, in this case, your friends and family control over 51% of shareholding. But this limits the amount of money you can raise as Investors only have 49% portfolio in your company. Now, if you want this business to be sca...

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Hi, 4a: There are various 'models' that you can use to estimate how many shares/percentages your new partner should get. These include (a) his/her investment in time and/or money, (b) the current + potential value of the company, (c) the time and/or money that you as the original founder alread...

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I'd say you're *almost* ready to talk about equity but before you do, I think it's really important to check in as a group and see who really wants "in." Startup Weekends create a lot of enthusiasm and excitement but I've seen a lot of projects originate there that end up like reality TV - a con...

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Before I get to your question, let me give you a tip: always aim settle questions of payment before the work happens. It is ten times easier to agree on a price beforehand, and having done that doesn't stop you from changing it by mutual agreement later. The problem with paying cash is pretty ob...

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Type of shares are generally split into two: common/ordinary (depending on the jurisdiction) and preferred. The former are granted to founders and employees (most commonly as options with a right to purchase common/ordinary shares). The latter are generally issued to investors and include special...

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The first matter for you to conclude is to agree the terms of a shareholder agreement between the two founders. This shareholders agreement should govern the management of all significant governance matters. Without this you will subject to the constitution documents of the company and local co...

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It's good that you know what you want, but I expect that here you will be constrained by the market. I've been involved in startups a long time, and I have honestly never of a developer who is not only being asked to work for no salary, but to buy in with cash. You may see it as "giving away equi...

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