article thumbnail

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.

article thumbnail

5 Keys To Negotiating Your Fair Share Of Any Startup

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone. Amount of venture funding provided.

Cofounder 435
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 Criteria For Splitting Equity In Your New Venture

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone. Amount of venture funding provided.

Equity 238
article thumbnail

A VC’s Blink Reaction to Your Co-Founder

View from Seed

I like to say that selecting a co-founder is the single most dilutive decision that a founding CEO can make, and so that decision can send all sorts of signals about a founder’s priorities, judgement and personality. We are not zealots that founding CEO’s must have cofounders or that the equity splits should be equal.

Cofounder 408
article thumbnail

Are You Getting Your Fair Share Of Startup Equity?

Startup Professionals Musings

So the first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90% of the equity. The value in a startup is all about tangible results, so I see no equity value in the idea alone. Amount of venture funding provided.

Equity 120
article thumbnail

How many cofounders should your startup have?

The Next Web

Two more entrepreneurial ventures later, Gleb cofounded online backup provider Backblaze to help consumers affordably, automatically, and safely back up their data. What are the pros and cons of starting a business alone versus with cofounders? The required number of cofounders for success is: “Zero” – You don’t need a cofounder.

Cofounder 143
article thumbnail

How Much Founder Stock Should You Offer Co-Founders?

Startup Professionals Musings

The first question I usually get is what percent of the company or equity is that person worth? Just because it was your idea doesn’t mean you “deserve” 90 percent of the equity. The value in a startup is all about tangible results, so there is no equity value in the idea alone. Amount of venture funding provided.

Cofounder 261