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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. Sometimes co-founders put off the equity split question for some time.

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

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 255
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. On average, founders own just 43% of equity by Series B , declining thereafter. Flexible VC 102: Variations.

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

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 173
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Let’s set up a framework. Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. So money spent should add equity value or create IP that eventually will. But what IS the right amount of burn for a company? Here’s overall what you need to know.

Burn Rate 383
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State of VC 2.0

View from Seed

This post is inspired by some of the earliest conversations I have had with the team here at NextView and since the beginning of my VC journey. The three-question framework goes as such: Q: How much tech-related market cap will be created in the next 10-20 years? Source: Cambridge Associates (VC) & TradingView (Equities).

Valuation 319
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State of VC 2.0

View from Seed

This post is inspired by some of the earliest conversations I have had with the team here at NextView and since the beginning of my VC journey. The three-question framework goes as such: Q: How much tech-related market cap will be created in the next 10-20 years? Source: Cambridge Associates (VC) & TradingView (Equities).

Valuation 295