Business Equity Partnership
Startups issue equity that vests over time to align compensation with the long-term goals of the company. Investors receive a little bit (determined by the business owners and other investors) the first year, more the second year and so on. The most common equity formulation allows options to vest over four years with 25 percent vesting after one year of employment and the remainder vesting in equal monthly installments over the next three years.
Apprentice Project Funding
- Calculate the value of the business using an equity table: assets + annual cash flow – liabilities = value of the business;
- Determine Vesting and Disbursal Calculation using http://fastignite.com/startup-tools/vesting-calculator/:
- Factor investment amount;
- Calculate Investment Return
- Register under the Global African apprentice project of your choice with Equity Portal www.Equitynet.com
Equity Floor Determination
If the floor is set at $10 and an investor exercises at $100, s/he will pay have to pay taxes on $90. On the other hand, if the floor higher, at like $90, the investor will only have to pay capital gains of $10. May sound confusing, but we ensure the floor is the correct value, otherwise investors will have to pay higher capital gains when you sell. Read more investor/employee contributions at http://quickbooks.intuit.com/r/equity/every-document-you-need-to-pitch-and-onboard-equity-investors/.
Buy Sell Agreement Regeneration
We put together a Buy-sell Agreement. Investors are provided a buy-sell agreement that specifies when you can sell the stake, to whom, and at what price. It includes language that prevents sale to shopping stake, selling to a stranger or, worse, to a competitor.
Apprentice Project – Venture Capital Prep
Comparative Business Sales can be done unofficially if comparables make sense. We complete valuation by using the comparative business sales model. This includes a search for nearby (within 10 ZIP Codes) comparable businesses via www.Craigslist.org. We survey 5 like businesses, note similarities, differences, and their respective sale prices. Then all five sale prices to obtain median sale prices are averaged. We factor differences to make adjustment to the price. Each valuation price is divided into 1,000 stocks, as each projects IPO.