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They do take an equity stake but it only converts in a future funding round or acquisition. If you stay independent forever they can't provide any pressure. Thi
by seibelj 8y ago
They do take an equity stake but it only converts in a future funding round or acquisition. If you stay independent forever they can't provide any pressure. This is basically like normal equity but a weaker form I guess.
- tylertringas 8y agoYes, by default we don't take equity (shares, board seat, none of that). If you decide to raise a round of equity financing (ie VC) we could convert into equity alongside them and if you sell the company we get a % of that. There's a spreadsheet here that lays it out: https://earnestcapital.com/shared-earnings-agreement-digging-into-the-numbers/ https://earnestcapital.com/shared-earnings-agreement-digging...