Remove Cofounder Remove Cost Remove Founder Vesting Remove Valuation
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Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

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Most Common Early Start-up Mistakes

Both Sides of the Table

These periods of time can leave a founder very vulnerable in the future. Assuming normal valuations at fund raising rounds you’ll be down to 6-12% after you’ve created a stock-option pool and raised capital. That’s the difference between a founder and a non-founder. Founder vesting.

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The Equity Equation

venturehacks.com

Consider the opportunity cost of spending shares on employees and investors. Offers from top-tier firms increase your valuation. Consider the opportunity cost of spending shares on employees and investors. ” You need to consider the opportunity cost when you spend equity. We have some additional thoughts.

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