Issuing Equity: A Guide for Startups

When you issue equity in exchange for investment, you essentially give up partial ownership of your startup. This transfer of ownership can vary significantly, affecting control and decision-making within the company. Whether the impact is substantial or minimal, issuing equity is the first step toward diluting the founders' ownership. Therefore, it’s important to understand the implications and terms of issuing equity to make informed decisions.

Table of contents

1. Terms Sheet

2. Shareholders Agreement

3. Share Subscription Agreement

4. Intellectual Property Assignment Agreement

5. Types of Shares

6. Conclusion

Let’s dig in!