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This got me thinking. If 100 people all pony up $1000, then you've got $100,000 of funding and no equity (as the founder). But if we stretch this idea - say $
by phlipski 6y ago
This got me thinking. If 100 people all pony up $1000, then you've got $100,000 of funding and no equity (as the founder). But if we stretch this idea - say $1000 buys equity in the startup equal to 49% / (total number of backers). The founder still keeps control and now has no cap on funding.
I write this with almost zero knowledge of equity financing of startups, and vc's, etc... Just spit-ballin' here!
- repartix 6y agoHm...this is worth trying. To get it to work, at this stage practically, the website would have to explain to users that it's basically a promise by the creator. The site could draft documents and give people some sort of equity certificate or what not. But since I have no clue how this works legally, and really have no users, I can't go out talking to lawyers about some idea that doesn't have legs. I'll probably take the site offline in a week if posting on Reddit doesn't get users.