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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly.

Equity 315
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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth. Sometimes co-founders put off the equity split question for some time.

Cofounder 255
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Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

Gust

Some commentators have suggested this is the wave of the future, signifying a shift in the balance of power from investors to founders of the relatively small, elite group of growth companies that make it to public markets. Options and warrants, when issued, are also typically exercisable for shares of Common Stock.

IPO 159
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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth. Sometimes co-founders put off the equity split question for some time.

Cofounder 173
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Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Employee Benefits. Will Work for Equity. Dave Graham Business Venture Capital Private Equity GlobalLogic Inc. Last spring, Dave Graham , founder of software consulting firm Arizona Bay, learned that a major client, Jumpstart Automotive Media, had been acquired for more than $80 million. Financing A Small Business.

Arizona 40
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How to Radically Stand Out with Brand Marketing

ConversionXL

In 2002, Elon Musk created Space X. At a startup, this can be as simple as defining why the founder started the company in the first place. CXL’s founder, Peep Laja, has a specific “reason why” his company Wynter exists. Can you capture more brand equity by executing marketing tactics in new or better ways?

Marketing 109
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Some Career Advice for Aspiring Tech CEOs

Both Sides of the Table

For some aspiring to be tech entrepreneurs, I often suggest a two-step process, as I argued in this post that “ The First Startup Founder You Need to Invest in Is You.” The narrative of this discussion is something like this: I meet a 35-40-year-old founder with two kids and mortgage. He still has the dream.