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Splitting equity in a startup

We have a lot of conversations with entrepreneurs about the complicated subject of splitting equity in a new venture.

When you ask someone to take a minority equity stake in exchange for a service, you're asking them to become an angel investor. Most developers aren't in a position to invest as an angel, where returns are often many years out. The only recourse for the developer is to hedge his bet by limiting the percent of time he "invests" in your company.

Read more on the Differential blog:

http://differential.io/blog/splitting-equity-in-a-startup

 

Posted by Ryan Walker
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Tim Metzner
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