I have not much experience in dealing with shares, startups and spin-offs and hope for some advice. I work for a company as an "intrapreneur" for my own project but for a salary like a normal employee. We have just got a prospective investor who wants to invest into my project for 25% of shares. Valuation is not yet discussed (but I expect company value of 1-2 million Euro) and the whole thing is still under discussions. But if it works out this would mean creating a new start-up out of my project. I have 2 questions:
I was planning to ask for a raise before the investor appeared. Now I doubt whether the right moment is now before the spin-off or wait for it after spin-off.
a. I am not sure spin-off may happen. I definitely need a raise either ways
b. Should I wait and discuss it during the formation of new start-up if that happens?
c. I am thinking of asking for salary raise now. My fear is I may not have a decisive power in the new start-up if my salary is low. The new start-up may not be keen to increase costs after the formation.
d. Any inputs, What does normally happen with salaries in such a spin off cases?
Alternatively should I aim for shares in new start-up / spin-off?
a. What could be the rough % I should aim for as a founder?
b. I am not sure if I would be elevated to a founder in new start-up since I am still an employee of the parent company. Would my salary get reduced if I were to share ownership?
If any extra info is require to define a better picture please ask.