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How does equity within a private company work? (I am running a start-up, and planning to source for new funds to scale the business).

How does equity within a private company work? (I am running a start-up, and planning to source for new fu… by @R44D

Answer by Raad Ahmed:

Chris Harvey’s answer here gives a great starting point and a lot of thorough information about how equity generally works within a private company. But when you decide that you are ready to raise new funds, I suggest you speak with a business attorney that can help you draw up the specific terms of and protect yourself in the transaction. Raising funds means giving up some of your equity and you want to make sure that you protect yourself as best you can.

At LawTrades, our business attorneys have experience with the fundraising process and have helped many other companies successfully raise funds to scale their business. Visit our website to see how we can help you!

How does equity within a private company work? (I am running a start-up, and planning to source for new funds to scale the business).

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