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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. Equity is split 55% and 45%, but where is that officially recorded? Praveena wants to invest $20,000 and get 20% equity.

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Finding a Technical Cofounder

startupbaltimore.org

Finding a Technical Cofounder by Mike Subelsky on September 17, 2010 Advice View Comments Over the past 18 months I’ve had the same conversation with about ten entrepreneurs looking to start a software-based business. As Dave Troy put it, it all boils down to this: “In Entrepreneurial Ecosystems, Cofounders Find You!&#

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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. Our categorization is not a technical one. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity. 2-5x return cap + path to uncapped equity-returns.

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Everything you always wanted to know about cofounders

Up and Running

Every business needs some technical skill and some business acumen. Should co-founders have the same equity stake? Now that I have launched some startups, I would say there is no reason to have co-founders have the same equity stake. Most co-founders decide on the equity structure in a very arbitrary way. Skills Part.

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Should You Share Equity with Consultants?

www.inc.com

Advisor. ); STARTUP. Should You Share Equity with Consultants? To grow his cash-strapped start-up, Parker ended up sharing equity -- not only with employees, but also with consultants and vendors. Parker found that equity as compensation helped build loyalty to his company -- even among consultants. Email address: Home.

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Why We Prefer Founding CEOs

Ben's Blog

VMware—Diane Greene. (*) While not technically cofounders, Andy Grove and Thomas Watson, Sr. Andy Grove was Intel’s third employee (after the two cofounders Robert Noyce and Gordon E. Despite this dynamic history, modern record company executives badly missed the most sweeping technical innovation—the Internet.