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Gigster Fund – Freelancers Benefit When the Company and Clients Do Well

gigster.com

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Re: Gigster Fund – Freelancers Benefit When the Company and Clients Do Well

#4

Post by polishninja »

It looks like Gigster will invest (money, time?) in some companies from a predetermined fund, not Gigster itself. In turn, they will share 1% of their fund equity with all Gigster developers who were active at the time, paying out when a fund company or Gigster liquidity event occurs. They will allocate rights to returns to active Gigster developers over a 1 to 5 year period.

It looks like, as a Gigster developer, you would get 1%/total active Gigster developers. If there were 500 Gigster developers over that 1 to 5 year period, you'd get 1%/500 = 0.002% of a liquidity event depending on Gigster's weighting mechanism. If Gigster's equity stake was 20% in a company that exited for $100 million, you'd receive maybe $40,000 depending on how Gigster determines your weighted percentage.

It's not really even the same league as a 401k or pension, contrary to what the page says.

Calling it equity is a bit confusing. On the page it states at the top:

"Gigster Fund provides our freelancers with access to equity from Gigster and select companies in our client portfolio."

At the bottom it states with regards to owning equity:

"No. Direct equity ownership or indirect ownership through a limited partnership has complex tax & legal implications, and the SEC limits the number of shareholders a corporation may have which would make direct ownership impossible after a certain number of freelancers".

And

"No. Direct equity ownership or indirect ownership through a limited partnership has complex tax and legal implications. In the United States, for example, Gigsters would be required by law to be accredited investors."

Re: Gigster Fund – Freelancers Benefit When the Company and Clients Do Well

#6

Post by acconrad »

merpnderp wrote: post #5

Are there really tons of companies hiring freelancers to make map, music and messaging apps at ~$40k/4 months?

I considered being a gigster between jobs, and when I realized most people made between $5-10k/mo working full time I turned off my account.

Re: Gigster Fund – Freelancers Benefit When the Company and Clients Do Well

#7

Post by gk1 »

As a freelancer (consultant), no thanks. This looks like yet another platform that commoditizes freelancers (think Upwork). The belittling name "gigster" doesn't help.

If you're a freelancer/consultant who wants equity, ask for it. Some companies are willing to give non-qualified options (the only choice, really) after you've built up a relationship and if you're making a significant contribution to the company.

Also, I've read the page top-to-bottom and still not fully clear on what's happening here. Highly suggest running this by non-insiders and rephrasing the messaging until it's easier to understand.

Re: Gigster Fund – Freelancers Benefit When the Company and Clients Do Well

#8

Post by gk1 »

merpnderp wrote: post #5

Are there really tons of companies hiring freelancers to make map, music and messaging apps at ~$40k/4 months?

I imagine it's the same companies hiring freelancers off Upwork and other such sites. They're looking for the cheapest possible labor, and quality comes second.

Re: Gigster Fund – Freelancers Benefit When the Company and Clients Do Well

#10

Post by dejv »

merpnderp wrote: post #5

Are there really tons of companies hiring freelancers to make map, music and messaging apps at ~$40k/4 months?

well, there are tons of active projects all the time. Scope, size and quality of those projects vary a lot, but they do exists.
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