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Gigster Fund – Freelancers Benefit When the Company and Clients Do Well

81 pointsby quackwarealmost 9 years ago

10 comments

gk1almost 9 years ago
As a freelancer (consultant), no thanks. This looks like yet another platform that commoditizes freelancers (think Upwork). The belittling name &quot;gigster&quot; doesn&#x27;t help.<p>If you&#x27;re a freelancer&#x2F;consultant who wants equity, ask for it. Some companies are willing to give non-qualified options (the only choice, really) after you&#x27;ve built up a relationship and if you&#x27;re making a significant contribution to the company.<p>Also, I&#x27;ve read the page top-to-bottom and still not fully clear on what&#x27;s happening here. Highly suggest running this by non-insiders and rephrasing the messaging until it&#x27;s easier to understand.
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polishninjaalmost 9 years ago
It looks like Gigster will invest (money, time?) in some companies from a predetermined fund, not Gigster itself. In turn, they will share 1% of their fund equity with all Gigster developers who were active at the time, paying out when a fund company or Gigster liquidity event occurs. They will allocate rights to returns to active Gigster developers over a 1 to 5 year period.<p>It looks like, as a Gigster developer, you would get 1%&#x2F;total active Gigster developers. If there were 500 Gigster developers over that 1 to 5 year period, you&#x27;d get 1%&#x2F;500 = 0.002% of a liquidity event depending on Gigster&#x27;s weighting mechanism. If Gigster&#x27;s equity stake was 20% in a company that exited for $100 million, you&#x27;d receive maybe $40,000 depending on how Gigster determines your weighted percentage.<p>It&#x27;s not really even the same league as a 401k or pension, contrary to what the page says.<p>Calling it equity is a bit confusing. On the page it states at the top:<p>&quot;Gigster Fund provides our freelancers with access to equity from Gigster and select companies in our client portfolio.&quot;<p>At the bottom it states with regards to owning equity:<p>&quot;No. Direct equity ownership or indirect ownership through a limited partnership has complex tax &amp; legal implications, and the SEC limits the number of shareholders a corporation may have which would make direct ownership impossible after a certain number of freelancers&quot;.<p>And<p>&quot;No. Direct equity ownership or indirect ownership through a limited partnership has complex tax and legal implications. In the United States, for example, Gigsters would be required by law to be accredited investors.&quot;
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rabblealmost 9 years ago
Does gigster have anything real at all? There are no gigs at all listed on their site... just a few full time jobs in SF, plus things for working on gigster itself. Seems like it might be a lean startup trick of painting the sky blue to try and build both sides of a marketplace.
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merpnderpalmost 9 years ago
Are there really tons of companies hiring freelancers to make map, music and messaging apps at ~$40k&#x2F;4 months?
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PeterProlificalmost 9 years ago
This sounds great but it seems that they do more corporate work.<p>Can&#x27;t see freelancers retiring on a miniscule % of a muslim dating app.<p>You&#x27;d think with all the quality devs being purported that there&#x27;d have to be something of quality in there although the portfolio so far is YAWN!
koolbaalmost 9 years ago
From the article, emphasis mine:<p>&gt; This allows our freelancers to <i>receive tangible rewards</i> for their hard work building incredible software, and helps them prepare for the future.<p>Wouldn&#x27;t simplify paying a freelancer be a tangible reward? And if you&#x27;re not paying them then they&#x27;re not really freelancers, they&#x27;re either interns or suckers (or both).<p>&gt; Will every Gigster Fund company yield a successful return? No. Although some startup companies yield extraordinary financial returns, many fail.<p>Ha! Great way to spin &quot;<i>The majority of this will be worthless ... but you buy Powerball tickets too right?</i>&quot;
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bazqux2almost 9 years ago
Giving people a very small stake in their work adds much greater inventive than cost. That alone is a good idea (See Starbucks). Emotions trump math - even for programmers. I expect the confusing terms are intenional to make the math harder.<p>But... this is the same company that was giving out work quotes in less than 10 minutes. I expect gigsters existence is subsidized by VC investment and it will be unable to succeed long term. I&#x27;m not expecting good things for anyone involved.
orthoganolalmost 9 years ago
I was always turned off by the language Gigster uses which makes me wonder about the kind of people they are:<p>&quot;Talent pedigree - 1%&quot;, &quot;Hire All- Stars&quot;, &quot;Marquee Investors&quot;<p>That aside, I&#x27;m not really interested in more hand-holding-as-a-service, this time aimed at us consulting developers.
shivam2501almost 9 years ago
This is new and something which differentiates them from other freelance networks. Looking forward to see how it rolls out.
keithnzalmost 9 years ago
Not quite sure about their terms and conditions. Seems very pervasive