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5 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a cofounder or two. So, the first question I usually get is what percent of the company or equity is that person worth? Giving a cofounder a salary won’t get you the “fire in the belly” you want.

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Introducing the Cap Table and Hiring the CTO

Feld Thoughts

Jane and Dick, our fearless cofounders of SayAhh, have set up an accounting system and created their first set of financial statements. This week they set out to create their cap table and hire a CTO. The founders each have common shares that will vest over four years. Praveena wants to invest $20,000 and get 20% equity.

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How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees? Equity for Founders.

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Building a High-Tech Startup Team

Business Plan Blog

While some investors will be willing to help you build your team, they will not be willing to invest in your startup if you are not willing to distribute responsibility and bring on diversified expertise. Don’t hire people with skills and qualifications similar to yours. Don’t make everyone a founder.

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Top 30 Startup Technology and Product Posts for September 2010

SoCal CTO

Great content again in September that meets at the intersection of startups, technology, product and being a Startup CTO. How-to get that guy as your mentor - Gabriel Weinberg , September 20, 2010 Forming a couple of good mentor relationships can help bridge the gap between startup failure and success, especially for first-time entrepreneurs.

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The Ultimate Guide to Starting a Software Company

Up and Running

“If you can fix a problem for someone and do it better, quicker, and/or cheaper than your competitor, you’re off to a good start.” – Gabriel Kuperman, founder and CEO of CuePin. We created UpKeep to fill this void—a cloud-based solution that was affordable for any size business.” – Ryan Chan, founder of UpKeep.

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Why Startups Fail - 20 Top Reasons Gleaned from 32 Startup Failure Post-Mortems

www.chubbybrain.com

After a thorough analysis of those 32 start-up post-mortems, we have determined the common reasons founders gave to compile this list of the top 20 ways to have your startup fail. Work life balance is not something that startup founders often get and so the risk of burning out is high. 13 – Disharmony with Investors/Co-founders.