• What is Equity Stake?

• Introduction by Art Fuller, Founder of Voice Up Inc.
   

• Hello

• If you’ve reached this page that means you are beginning the application review process for a position that will receive equity stake in Voice Up Publishing, Inc. We are looking for the right people that are mission-aligned to our purpose. In exchange, as the Founder, I am sharing a 33% equity share in the organization which will be evenly split among the founding team. The position you have applied for qualifies for this type of opportunity within our structure.
   

• Our mission is to transform how families support a healthier way for a better life. Much of the work we do is about building up our mental and behavioral health, reducing the stigma associated with mental health across our society.
   

• If you would like to learn more about me feel free to click here. I’ve known finance in a variety of settings (for-profit and non-proft). My heart has always been within a non-profit setting. However, I’ve also seen the downside of not being able to fully maximize an innovation within the non-profit sector. But, just so you know Voice Up Publishing will also have a non-profit component after the initial start-up.
   

• Now, let’s get to the important details and how equity stake will play a role.
   

• What are we looking for in an applicant?

• We are searching for individuals that enjoy collaborating with people that have different points of view. They also must be able to demonstrate consistency in treating others with humility, patience, and precision (empathy). Our team is going to achieve great things and we will overcome many challenges. The quality of this type of effort is worth much more than the equity we are providing. However, we know the ability to receive equity has the potential to be life changing for many individuals on our team.

• All applicants are strongly encourage to review our free self-assessment resources in determining if they are a good fit. 

• Voice Up Leadership Self Assessment Survey

• Career Self Assessment Survey
   

• What’s our equity stake plan?

• Here’s our plan.
   

1. Voice Up will begin our launch in January 2025. Our target audience is college and university campuses across the U.S. divided into regions.

2. During the first 6 to 9 months of this journey our founding team will invest sweat equity and receive percentage ownership stake in Voice Up Publishing Inc.

   1. Our goal is to reach at least 50,000 college students by January 2026 (raising awareness about our mission). We are well on our way with recruitment and outreach spanning colleges and universities across every region of the U.S.

   2. There are currently about 15.4 million undergraduate students enrolled in the U.S (around 5.7 million in the South, 3.4 million in the West, 3.2 million in the Midwest, and 3.1 million in the Midwest)

3. Around 6 months into of our operations, we will begin to generate higher levels of revenue that will grow at a steady pace. 

4. Once this is achieved, we’ll establish more traditional compensation structures and the equity stake will continue forward.
    

• More details

• To provide more clarity, here’s an example about how equity stake in a corporation works. The following response was generated by AI (Claude) based on my prompt below. We use AI in lots of different ways for strategic planning, forecasting, and detailed implementation analysis. Voice Up is committed to the ethical and equitable use of AI to help promote positive change.
   

• My prompt for AI: “Provide a written narrative of what equity stake in a corporation means and how that is played out during the life of a startup organization. Provide a specific example.”
   

• Here’s the response (from Claude)

• The Journey of Startup Equity: From Foundation to Exit
   

• Understanding Equity Stakes

• An equity stake represents ownership in a company, essentially a slice of the business pie. Unlike a loan that must be repaid, equity is an investment that grows (or shrinks) with the company's value. Each piece of this pie represents not just ownership, but also the right to share in profits, voting power in major decisions, and potential returns if the company is sold or goes public.
   

• The Lifecycle of Startup Equity

• The Founding Stage

• When a startup is born, the equity pie starts whole. Let's follow the story of TrulyYou, a fictional software company founded by Sarah (technical co-founder) and Michael (business co-founder) in 2020.
   

• Initially, they split the company:

1. - Sarah: 51% (leads product development)

2. - Michael: 49% (handles business operations)

3. - Company valuation: $1 million (based on their initial business plan)
    

• Early Growth and First Investment

• Six months in, TrulyYou needs capital to hire developers. A seed investor offers $500,000 for 20% of the company.
   

• Post-investment split:

1. - Sarah: 40.8% (51% × 0.8)

2. - Michael: 39.2% (49% × 0.8)

3. - Seed Investor: 20%

4. - Company valuation: $2.5 million
    

• Employee Stock Option Pool

• To attract talent, TrulyYou creates an employee stock option pool of 15% of shares, further diluting existing shareholders:
   

• New split:

1. - Sarah: 34.68%

2. - Michael: 33.32%

3. - Seed Investor: 17%

4. - Employee Pool: 15%

5. - Company valuation: $5 million
    

• Series A Funding

• Two years in, TrulyYou raises Series A funding: $10 million for 30% of the company.
   

• Updated split:

1. - Sarah: 24.28%

2. - Michael: 23.32%

3. - Seed Investor: 11.9%

4. - Employee Pool: 10.5%

5. - Series A Investors: 30%

6. - Company valuation: $33.3 million
    

• The Exit (Oh by the way the Founder of J Ellington is not looking for an exit).

• Five years after founding, TrulyYou is acquired by a larger tech company for $100 million.
   

• Final payout:

1. - Sarah: $24.28 million

2. - Michael: $23.32 million

3. - Seed Investor: $11.9 million

4. - Employee Pool: $10.5 million

5. - Series A Investors: $30 million
    

• Key Lessons from TrulyYou's Journey

1. Dilution is Normal: The founders' initial 100% ownership dropped to roughly 47% combined through necessary fundraising and employee incentives.

2. Value vs. Percentage: While the founders' percentage decreased, the value of their stakes increased dramatically - from splitting $1 million to sharing in $100 million.

3. Strategic Timing: Each funding round was timed with specific growth needs and milestones, maximizing valuation before dilution.

4. Employee Incentives: The employee stock option pool helped attract and retain talent by giving team members ownership in the company's success.

5. Exit Impact: The final sale price determined the actual value of everyone's equity stakes, turning paper value into real returns
    

• Practical Implications

1. - Founders must balance the need for capital against dilution

2. - Each funding round should align with clear growth milestones

3. - Employee equity can be a powerful tool for recruitment and retention

4. - The true value of equity isn't realized until an exit event

5. - Early dilution can be worth it if it leads to faster growth and higher ultimate value

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Hope this example helps. We look forward to learning more about you and why you are a great fit to serve as a member of our founding team at Voice Up Publishing Inc. - Art