Need cash or funding to cover the needs of startup — here is an alternative that is back for another go around. Explore well before jumping in — but it could be for you.
Excerpt: Raaj Nemani and a pal were making plans to start their own business, an online retailer of limited-edition sneakers. But they couldn’t afford the $100,000 for high-end website design.
Then, they learned of an alternative.
Raaj Nemani and Aaron Firestein of Chicago paid for website development primarily using equity in their firm, BucketFeet Inc.
By joining forces with a Chicago website-design and professional-services firm, the pair of first-time entrepreneurs were able to get the work they needed by paying primarily with equity, instead of cash.
The swapping of equity for services is exploding, as a range of professional services providers—including website designers, attorneys, ad agencies and business consultants—seek to profit directly from the growing demand for their services on the part of U.S. start-ups.
Read full article via Dot-Com Bubble’s Equity Swaps Are Back – WSJ.com.