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How to calculate the equity split between co-founders in a startup

The Next Web

There are a lot of variables to go into calculating a fair equity split a startup team. If people are funding the business, they should get a premium because at the end of the day, cash funding founders are acting no different than a seed stage investor. How do you manage your equity split in your company?

Cofounder 136
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NextView’s Greatest Hits

View from Seed

Magic Graph: How Much Seed Capital Should You Raise? “At some point, an entrepreneur begins to exhaust her network, and her network’s network, and the incremental hours devoted to fundraising will begin to yield less capital raised than the previous.” ” (Lee Hower). ” (David Beisel). ” (Rob Go).

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Exploring the Best Free Crowdfunding Sites Online

The Startup Magazine

While you get funding for your project, backers in return receive rewards or equity depending on the type of crowdfunding. Lastly, note that using free crowdfunding sites provides an excellent cost-effective solution compared to seed capital or personal loans with high-interest rates.

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Seeking CEO+team for VC-backed startup: Make America Functional Again

David Teten

pre-launch, BIG equity, big peeps involved–ANY TIPS?? Do you have a great team at your seed startup, but your product just isn’t working? We agree on an equity split, vesting, and initial compensation structure. And how do you split the equity? This work is unpaid, as with any other startup at the pre-seed stage.

America 60
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Seeking CEO+team for VC-backed startup: Make America Functional Again

David Teten

Ideally we’re looking for the Magical Founding Team Mix For Web Startups : Developer; Designer / UI / UX person; Inbound Marketer; Sales Person; and in addition, ideally a data analytics person. We agree on an equity split, vesting, and initial compensation structure. And how do you split the equity? This work is unpaid.

America 60
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A Quality Benchmark for Accelerators: The Global Accelerator Network

Feld Thoughts

Not every accelerator is/could be/would be a member in GAN, nor is it designed that way. Provide some sort of seed capital to their founders. Take a small amount of equity (usually ~6%) and overall have terms that are favorable to entrepreneurs.

Global 179
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Avoiding the Common Pitfalls of Securing Capital: Innovative Financing Options for Today’s Startups

ReadWriteStart

The fact is, securing capital for a startup is one of the most difficult parts of starting a business. Yes, there are other pressing considerations, too, such as connecting the product itself with a buyer and building a reliable team of workers to help design and create it. That’s not the only advantage of using crowdsourcing, either.