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1% Of Nothing Launches To Get Startups Donating Equity
- stellar678 15y agoBrilliant move to latch onto the 1%/99% rhetoric flying around right now. Also, a pretty neat idea. I wonder how VCs, etc... would look at a company with that odd percent-chunk missing in funding rounds.
- indiekid 15y agoI'd love to take credit for that "brilliant move", but it was totally accidental. Michael Birch came up with the name back in April! As an aside, there's nothing missing in the funding rounds. In the current iteration, this is a pledge given by the founders, which means they don't actually give up their 1% until the very end (an acquisition).
- PabloOsinaga 15y agoNice idea and initiative. I admire the effort. Some feedback on the name: while it succinctly denotes how it works, I feel it has some negative connotations. For a founding team and investors to commit 1% of equity to charity, it is a big deal. "1% is nothing" sound patronizing. Moreover, I don't know any single founder that wants to be associated with someone that characterizes the value of his/her startup as 'nothing' - as in 1% of nothing - i.e., your company is worth nothing. Of course I understand the spirit of where you are trying to go, but as a byproduct you are generating this negative (unconscious?) connotations that I would try to avoid. Perhaps '1% means a lot' or something along those lines would be more appealing.
- tlrobinson 15y agoI don't have a problem with the name. I think most founders/investors will see it as meaning the current value of the company is insignificant compared to what they hope it will one day become.
- indiekid 15y agoThanks for the comment, and I appreciate your honesty. When we say "1% of Nothing", it means (and generally has been assumed by most) that it refers to when the company starts. Clearly once the company has traction, it's not worth "nothing". But the thing is - the name is to provoke an emotion. First it's to make you realize that you still keep 99% of your company, or even just 99% of the shares that you've been granted. Second it's to point out that at the early stages, it really is worth basically nothing on paper. Obviously there's far more value in it than that, but we're trying to stir up a reaction - good or bad - that can prompt a thought.
- chetan51 15y agoI love this idea.
- rudiger 15y agoGiven the Zynga fiasco, is this a good or bad time to launch a startup about donating early-stage equity?
- frisco 15y agoI don't see how that relates to this.
- dylangs1030 15y agoDoesn't really matter, before Zynga there was Skype, and so on. Doesn't reach the public eye nearly enough to cause a huge scare in venture investing.
- indiekid 15y agoThis is an idea, not a startup. It's about giving, which is universal. We would have launched it the day of the economic meltdown a few years ago and the message would have remained the same.
- deleted 15y ago[deleted]
- dylangs1030 15y agoGreat idea. Although, I'd have to say, I think part of the reason early-stage startups don't pledge equity already ("nonexistent", as he said) is because they're so busy and it's just not on their minds. This might change that, though, which is arguably a good thing.
- Joakal 15y agoIf it takes off, I predict that there'll be news of how a company will try to avoid the pledge after the "idealistic founder" pledged it. And it'll blow up in mainstream media how startup owners screwed the charity, putting off more other workers.
- MattBearman 15y agoThis is one amazing 'how did no one think of that before' ideas! Really hope it goes well, and no one tries to back out of the deal once their start-up hits the big time (I'm looking at you Zynga)