Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Equity is used for investment purposes to give the investor an ownership stake in the company.

To calculate your ownership percentage you take the number of shares you are purchasing and divide it by the total number of outstanding shares. Another way to calculate your ownership is to use the pre-money-plus-investment-equal-post-money valuation equation.

Each share is priced so you know how much you’ll pay for that equity stake. 

Be forewarned that startups on the venture track will continue to raise funding and add more shares to the outstanding share pool thus diluting your percent ownership.  

In most cases, the valuation will go up with each successive round of funding so the total valuation of your equity stake will increase even though your percent ownership declines.

It’s not unusual for CEOs exiting their company to have less than 10% ownership of the company.

Also, there are different types of equity. There are common shares and preferred shares. Preferred shares carry additional advantages over common shareholders. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Music courtesy of Bensound.

In this episode, Hall welcomes Gary Boomershine, Founder & CEO of RealEstateInvestor.com.

RealEstateInvestor.com is a vertical solution provider in the real estate niche, servicing real estate investors, agents, and private lenders. Their flagship service, REIvault.com, provides managed marketing, shared systems, and proven results. They have a proven direct response marketing formula offering both direct mail and online PPC/SEO services to their members. They’ve sent out over 14,000,000 pieces of direct mail and are averaging about 500,000 pieces a month currently. They are a "membership" model looking for like-minded investors who believe in shared resources to get altitude in their business faster, cheaper, better. They have been on the Inc5000 Fastest Growing Company List for 2016 and 2017. 

Gary founded RealEstateInvestor.com in 2005 out of the need to scale and grow his own real estate investing and home-buying business.

With a family legacy in the real estate niche and a long successful career in enterprise and emerging technology markets, Gary saw the vision for RealEstateInvestor.com. He noticed the glaring opportunity to leverage people, processes, and technology to gain a leg up in a changing and competitive marketplace. As he worked to develop and use the initial product and service, he saw his real estate business flourish by allowing him to work smarter – not harder, and focusing on the one thing that makes money – talking to sellers and making offers.

Gary currently resides in Northern California with his wife and two daughters where he continues to be a visionary for RealEstateInvestor.com. He is actively involved in real estate investing and private lending. In his free time, he enjoys fly fishing, skiing, hiking, mountain biking, and traveling with family.

Gary shares what excites him right now in the real estate industry. He discusses how he sees the industry evolving, and the best opportunity for investors to pursue today.

You can visit RealEstateInvestor.com at www.Realestateinvestor.com.

Gary can be contacted via email at gary@realestateinvestor.com, and via LinkedIn at www.linkedin.com/in/garyboomershine/. You can also listen to his podcast by clicking here Real Estate Investor Huddl‪e‬.

Music courtesy of Bensound.