How To Divide Equity In Your Start Up
by Jeff Tunnell · 01/28/2009 (1:29 pm) · 4 comments
While I have always advocated offensive goals such as getting better at your craft, finding a team of like minded people, shipping a portfolio of innovative games, and not worrying too much about defensive details such as contracts, NDA's, company structure, etc. many people are still concerned with these issues. Since Push Button Labs recently went through getting our company set up, I thought I would give you just one example of how to get through some of these issues and explain how we did it.
makeitbigingames.com/2009/01/one-way-to-divide-your-company-equity-at-start-up/
-Jeff Tunnell, Game Maker
Co-Founder of GarageGames, now at Push Button Labs
Follow me on Twitter
makeitbigingames.com/2009/01/one-way-to-divide-your-company-equity-at-start-up/
-Jeff Tunnell, Game Maker
Co-Founder of GarageGames, now at Push Button Labs
Follow me on Twitter
About the author
#2
Good post, well thought out.
01/28/2009 (4:35 pm)
IANAL, a new acronym for me to remember. I though it was a hemorrhoid cream.Good post, well thought out.
#3
Game Article 1
Game Article 2
Game Article 3
This article and Thomas' article is a must read for anyone working on a game with more than one person who plans on dividing the royalties. Its a real deal killer if you guys don't agree on all of this up front. Your project will never hit the light of day if you cant agree on this. You should find out sooner than later after few months (or years) worth of development.
Jeff, this is awesome. I'll go as far as saying that this information is more critical to success than any amount of artistic talent or programming ability. If you can't make a deal internally you can't make one with a publisher or do anything with your game. You could give the game away, but if you expect to get paid for your effort then you better pay attention.
For everyone else reading this post, be sure to read Jeff's article. It will be a life saver for your team!
For every one at Garage Games, both Thomas (The Lawyer) and Jeff (The Businessman) are saying the same thing. You must discuss how to divide ownership in your project (game or company) up front and put it in writing. It can be as simple as "we all get an equal share." The point of the matter is you must discuss it before you begin work.
01/28/2009 (6:09 pm)
Ok, this is one of the most useful things I have seen since Thomas Buscaglia's article "what is a game legally speaking?"Game Article 1
Game Article 2
Game Article 3
This article and Thomas' article is a must read for anyone working on a game with more than one person who plans on dividing the royalties. Its a real deal killer if you guys don't agree on all of this up front. Your project will never hit the light of day if you cant agree on this. You should find out sooner than later after few months (or years) worth of development.
Jeff, this is awesome. I'll go as far as saying that this information is more critical to success than any amount of artistic talent or programming ability. If you can't make a deal internally you can't make one with a publisher or do anything with your game. You could give the game away, but if you expect to get paid for your effort then you better pay attention.
For everyone else reading this post, be sure to read Jeff's article. It will be a life saver for your team!
For every one at Garage Games, both Thomas (The Lawyer) and Jeff (The Businessman) are saying the same thing. You must discuss how to divide ownership in your project (game or company) up front and put it in writing. It can be as simple as "we all get an equal share." The point of the matter is you must discuss it before you begin work.
#4
01/29/2009 (8:39 am)
Thanks for this; I've been consulting with lawyers and executives and accountants trying to get this all worked out, because it has been very informal. But now that people are seeing a light at the end of the tunnel, things have gotten a might trickier; it's time for the NDA's to come out and play, and the contracts, and the corporate structure and equity and investment vehicles... oh man, it makes my head hurt. 
Employee Michael Perry
ZombieShortbus