Agreements

Where is the best sample debt-equity compensation agreement?

Ken Winer VP of Agency Channel at National Flood Services/Stone River

July 23rd, 2014

Rather than giving people stock or options now, I am working with people whom are willing to do so in return for equity later based upon the number of hours of work they invest with me.  I'm told this is referred to as a "Debt-equity".  Their hours invested turn into equity upon our Series A capital raise. I need a sample agreement that I can use.  Have you got one or something close to this that I can modify and use?

Liran Amrany

July 23rd, 2014

Check out Y Combinator's SAFE (simple agreement for future equity) docs:

http://www.ycombinator.com/documents/

You can use them with seed/angel investors as well.

Dave R

July 23rd, 2014

Here's an article you may have already seen that may be helpful: Everything You Ever Wanted To Know About Convertible Note Seed Financings (But Were Afraid To Ask)


David Fridley Founder at Synaccord

July 23rd, 2014

If you are trying to figure out how to divide up equity in a startup based on contributions, you might want to check out grunt funds in Slicing Pie: http://www.slicingpie.com/the-grunt-fund-calculator/

They have spreadsheets and other materials to help you with how do divide up the equity based on hours, cash, etc.  They have considered quite a variety of situations which makes it worth looking at.