Comments on: Working For Equity http://www.chrisconrey.com/working-for-equity/?utm_source=rss&utm_medium=rss&utm_campaign=working-for-equity Because Second Place is a set of Steak Knives Sun, 20 Nov 2011 04:24:53 +0000 hourly 1 http://wordpress.org/?v= By: James Archer http://www.chrisconrey.com/working-for-equity/comment-page-1/#comment-2158 James Archer Thu, 22 Apr 2010 14:23:01 +0000 http://www.chrisconrey.com/?p=848#comment-2158 My take on equity deals has always been that they should be treated the same as cash. If you want $30k of work out of us, then I'm going to put you through the same rigors that I would if you were asking me to hand you $30k of cash out of the bank (since that's what we'd have if we put that time toward a paying project instead). That means you're going to have to jump through a *lot* of hoops -- possibly more than with an angel investor because we don't have as much cash to play with, and because this kind of deal isn't our specialty -- and that ultimately I'm probably going to turn you down because I'm more realistic than a typical angel investor. That means you're better off going to an angel investor first, and *then* coming to us. :-) My take on equity deals has always been that they should be treated the same as cash.

If you want $30k of work out of us, then I’m going to put you through the same rigors that I would if you were asking me to hand you $30k of cash out of the bank (since that’s what we’d have if we put that time toward a paying project instead).

That means you’re going to have to jump through a *lot* of hoops — possibly more than with an angel investor because we don’t have as much cash to play with, and because this kind of deal isn’t our specialty — and that ultimately I’m probably going to turn you down because I’m more realistic than a typical angel investor.

That means you’re better off going to an angel investor first, and *then* coming to us. :-)

]]> By: Chuck Reynolds http://www.chrisconrey.com/working-for-equity/comment-page-1/#comment-2157 Chuck Reynolds Thu, 22 Apr 2010 01:07:46 +0000 http://www.chrisconrey.com/?p=848#comment-2157 Well said - it's funny this still has to be debated after all these years of us being pitched on these ideas and seeing them fail time and time again. There would have to be a REALLY good idea with some REALLY good people for me to consider that. Well said – it’s funny this still has to be debated after all these years of us being pitched on these ideas and seeing them fail time and time again. There would have to be a REALLY good idea with some REALLY good people for me to consider that.

]]> By: Stan http://www.chrisconrey.com/working-for-equity/comment-page-1/#comment-2149 Stan Sat, 17 Apr 2010 03:27:58 +0000 http://www.chrisconrey.com/?p=848#comment-2149 I've always felt that next time I start a company, at least some portion of my jobs would be done with equity buy in to those companies I felt truly had a business plan that I could get behind. I'm one of those who believe that when times are tough, some pretty solid companies need help to get critical things done, and that's when equity as a form of payment seems to make some sense. Certain things have to be there though - (1) the equity is offered in lieue of cash at a time of obvious cash shortfalls for that company; (2) the product or service that's being offered exites you almost as much as your own company does; and (3) you realize it's services in lieue of cash and there is a high probability it will never amount to anything. I guess in a sense then you're actually providing incubating services! I’ve always felt that next time I start a company, at least some portion of my jobs would be done with equity buy in to those companies I felt truly had a business plan that I could get behind. I’m one of those who believe that when times are tough, some pretty solid companies need help to get critical things done, and that’s when equity as a form of payment seems to make some sense. Certain things have to be there though – (1) the equity is offered in lieue of cash at a time of obvious cash shortfalls for that company; (2) the product or service that’s being offered exites you almost as much as your own company does; and (3) you realize it’s services in lieue of cash and there is a high probability it will never amount to anything. I guess in a sense then you’re actually providing incubating services!

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