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What to look for in employee share deal/equity arrangement?

1 pointsby netpenthealmost 14 years ago
We have recently completed a 3 month trial (as consultants/devops) with a startup who had raised around $1 million before we got on board (valuing the company at around $2.5 million).<p>We are happy working together and have been in discussions as to our compensation and have come to the number of between 3% and 8% of the company as a fair figure for our contribution.<p>The one thought I have is how does this work if they raise more money - everyone will get diluted - which is fair enough. If they raise another $2.5 million, I guess we get half of what we initially agreed on. Is this correct?<p>Has anyone got any other recommendations for things to look out for? (I'm most worried about the Skype type thing, where they end up with nothing).<p>We will see a lawyer to get this drawn up properly but we are kind of in the middle of nowhere and lawyers here may not have a good understanding of this kind of thing.

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