Free Service & Equity Model

Overview: DualUp Group's Free Service + Equity Model is a structured approach to partnering with high-potential founders who need product, engineering, or marketing support but lack up-front capital. Instead of a cash fee, DualUp provides services in exchange for equity in the partner company. This model aligns incentives — DualUp invests time and expertise only when it believes the company can deliver outsized returns.

Who Should Consider This Model?

This model is well-suited for:

• Early-stage startups with proof-of-concept or initial traction.
• Bootstrapped founders who need a technical or marketing co-founder substitute.
• Local businesses aiming for digital transformation but with constrained cash flow.

Detailed Step-by-Step Process

1. Application & Discovery: Founders complete an application that includes business model, traction metrics, team bios, and desired outcomes. DualUp conducts a discovery call to evaluate market fit and product viability.
2. Evaluation & Selection: The DualUp team assesses market size, competitive landscape, and the founder's ability to execute. Not every application is accepted — DualUp looks for opportunity, founder commitment, and strategic fit.
3. Scope & Contribution Definition: DualUp defines exact deliverables — MVP, user flows, brand assets, or growth campaigns — and ties them to clear milestones.
4. Equity Discussion: Based on contribution value and company stage, equity terms are proposed. These are discussed transparently with the founder.
5. Agreement & Kickoff: Once terms are agreed, a formal written agreement is signed and the work begins under milestone-based delivery.

Why This Works — Benefits for Both Sides

For founders: Access to a multidisciplinary team, rapid product development, and growth execution without immediate cash outlay. DualUp becomes a committed partner with experience and resources to scale the product.

For DualUp: Opportunity to own stakes in promising companies, build a pipeline of portfolio companies, and realize upside through exits or growth-driven returns.

Equity agreements are legally binding and should be drafted with precision. A clear contract keeps expectations aligned, limits disputes, and protects the investments made by both parties.

Key Contract Elements

1. Equity Percentage & Class

Document the exact percentage and the class of shares being transferred (common vs. preferred). If the business structure is an LLC, use unit-based descriptions and clarify economic vs. governance rights.

2. Vesting Schedule & Cliff

Vesting aligns long-term incentives. A common structure is a 36-month vesting with a 6–12 month cliff to ensure sustained delivery. Describe how equity vests based on time and milestone completion.

3. Milestones & Deliverables

Attach a milestone matrix to the agreement. Each milestone should specify:

• Deliverable description
• Acceptance criteria (how the deliverable will be validated)
• Due date
• Equity portion tied to that milestone

DualUp invests significant intellectual capital into partner projects. Protecting IP ensures DualUp's contributions are respected while giving founders a predictable handover path once obligations are met.

Default IP Position

By default, DualUp retains ownership of all deliverables — source code, designs, marketing assets, and technical documentation — until the client executes and files the required share transfer paperwork. This protects DualUp from scenarios where service is provided but agreed equity is not delivered.

Escrow & Conditional Access

To maintain operational continuity and trust, DualUp can use staged access and escrow mechanisms:

• Staging Access: Provide development/staging credentials and limited access while paperwork is finalized.
• Source Code Escrow: Store source code with a neutral escrow agent; release conditions are defined in the agreement.
• Data Exports: Provide client data exports and backups to ensure the business can continue operations even if access is suspended.

Next Steps & Resources

If you're considering this model for your business, start with a short application. Include your pitch deck, current traction metrics, and a brief runbook of what you want DualUp to build. We usually respond within 3-5 business days with feedback.