

Start Up Company, How many Shares to ask for? - chrisalexander

Hello fellow HN readers! :)<p>===========================================
Q: What would you do in this situation?
===========================================<p>Hope this is
- Deeply interesting (site post guidelines :)
- Helps other people like myself<p>I'm looking for any helpful comments. 
Will keep it short and sweet!<p>Note I am a passionate programmer: My purpose is to be creative and help as many people as I can along my path. I love Programming, and I feel it is a satisfying way of filling that purpose.<p>Background
==========
A start-up company is formed by a master mind sales and marketing strategist. It's based on a Marketing Model that is sure to make a lot of money, while also helping everyone Win. Everyone being; Us, The Company, Referrers, Clients, Sales.<p>12 Months ago (Feb 2010) a marketing model was being pitched to various people with varying skills and talents. 7 People come together to devote time and energy into a new Start-Up Company (Happy anniversary to me/us :)<p>Team: 7 people started at around same time.<p>Capital: very little<p>Investors: just us, people in team investing valuable Time and Energy.<p>Offered to me: 10% shares, + 2 times my normal wage when company is profitable.<p>Potential: Marketing Model has a lot of potential.  Excitement brews. Team is seemingly keen to work together. Great energy flowing.<p>* Fast Forward *
Ok, so it's been a roller-coaster ride, ups and downs :)<p>12 months later
===============
We have:
- Custom built Web App; CRM, Event Manager, and Marketing Toolkit, Website Generator.
- Marketing Model
- Education via regular Webinars; hosted by professionals in their field.
- 3 dedicated souls with a quest to drive this company to success.
- Some docs that resembles a sales process.<p>Funds: 
(-$0) a little in red, income is slightly less than expenses.
Wages so far: $0.00 (not enough profit yet)
Team Members: 
3 of 7 Remain, (Marketing, Finance, and IT/Web Programmer)
+ 1 Sales Manager part-time.
Capital: 0
Investors: 0<p>And Now...
I feel things are way off balance. 3 out of 7 people left and Shares kept going to the other two people where my shares stayed at 10%. Note: $0 have been paid for shares, only clear allocations &#38; transfers so far.<p>How would you feel being part of a team of 3 people, you are a full on dedicated developer, and company ownership is not even mentioned to you, only "we need more features." heheh. And, probably like you, when I focus on work - I pour my soul into it, just like any passionate programmer/hacker ;)<p>---------------------------------------
Main Question: 
     1. How to balance this? Ask for more shares?
     1.b. What would you do? 
---------------------------------------<p>PS: lots of details not mentioned, trying to keep it interesting and to the point, can go into it if people request.<p>PPS: Yes, there are many possible solutions ;)
I seek balance and harmony.
======
JonathanWCurd
Whats their reasoning for the shares that were not vested transferring to the
other remaining players. Wouldn't they just be unvested and thus irrelevant.

If not I'd like to hear their reasoning on this.

I think the three of you would have a higher percentage of the available
shares (since some would have been unvested when others left) but still the
same number you were originally granted.

Simple example each of you got 10 shares of a possible 70. Since 4 of the
people left without vesting you should now have 10 of 30 possible.

~~~
chrisalexander
Yes good point. It's 100 shares. We are all too trusting here.

Shares were "promised" but the vesting and unvesting never actually occurred.

My shares were allocated to me after getting very annoyed, 7 months down the
track. :/ boink!

I raised that point you mentioned. "Why didn't the shares get spread across
the remaining people when they were taken back?" Answer was, "this is my
company." :(

What happened was, we started working together before anything was property
allocated and signed. :-o not good. I recommend people that can't afford
lawyers to, at the very least, write something down on paper in words that
make sense to both parties and sign that. It's not great, but at least it's an
interim until money is made, then just go straight to the lawyer when
possible.

I look back now and also tell them, we should have just downloaded and signed
a standard partnership agreement. All the hassles of this weird setup we have
would not be with us. Note: there's a weird income / share of profits layer
too that I didn't go into. Partnership, or JV agreement would help that side
too.

