Company Ownership Question

by tiddybanger. Posted on Sep 11, 2020    2    4


I’ve recently been contact by a startup company offering me a small percent of their company to work as their director of marketing part time. How much should I ask for? I was thinking around 10%, but I wanted to see if anyone had a different opinion or could offer any advice.

Edit: I would be assisting him in coming up with the packaging, formulating the products, etc. He just started the company and has had no sales or products manufactured; he doesn’t really have much experience in the industry. All experience would come from me.


Comments

broken-ego 1

Listen to the start up podcast by gimlet media. Great reference for valuing your entry into a start up. The particular episodes called “Dating Ring” from 2015 end up discussing how a founder sees potential investment partners, and what others say about valuation.

If you don’t want to listen to podcasts, the TLDR version imho is that you probably undervalue yourself, and you are setting a precedent about what happens to a company you will partly own. You will also need an exit strategy, if not on paper in a contract, at least in your mind.

ericred22 1

It depends on the extent of your involvement in the company and the stage the company is in.

A completely brand new company? I would say 10-15% if you're working full-time, 2-5% if you are advising the company.

abofh 2

It depends entirely on the stage of the company

  tiddybanger 1

It’s brand new. The owner personally funding it, no products have even been manufactured yet