Startup Professionals Musings

MAY 1, 2023

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a cofounder or two. Giving a cofounder a salary won’t get you the “fire in the belly” you want. Each cofounder should get equity for value, based on these key variables: Lived a key role in a previous startup.

Technical Cofounder 247

Technical Cofounder Equity Distribution Cofounder 247

Startup Professionals Musings

AUGUST 9, 2020

Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. The CTO of many technical startups was the original founder. The CFO may have a major financial background, but might be a minority owner.

Cofounder 435

Cofounder Technical Cofounder Equity Intellectual Property 435

Startup Professionals Musings

SEPTEMBER 10, 2018

Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. The CTO of many technical startups was the original founder. The CFO may have a major financial background, but might be a minority owner.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Startup Professionals Musings

AUGUST 4, 2014

Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. The CTO of many technical startups was the original founder. Naïve cofounders have found themselves squeezed out in some recent cases, including Facebook.

Cofounder 261

Cofounder Stock Founder Technical Cofounder 261

Startup Professionals Musings

AUGUST 24, 2016

Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. The CTO of many technical startups was the original founder. Naïve cofounders have found themselves squeezed out in some recent cases, including Facebook.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

reidhoffman.org

NOVEMBER 12, 2013

Friendster’s valuation set the tone for the entire social networking space. What’s your differential business strategy? Your differential growth strategy? Your differential product? Put another way, the ideal financing partner is a financing cofounder. Why are you going to break out of the pack?

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111