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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.

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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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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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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 are looking for team members (full-time and advisory) with DNA from: – tech (especially sales tech, marketing tech, expert networks, B2B2C consumer internet); – communications (especially sales, PR, speechwriting, playwrighting); – public policy, legislative analysis and drafting, and/or policy or legislative advocacy.

America 60
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Exploring the Best Free Crowdfunding Sites Online

The Startup Magazine

Moreover, the traditional barriers in investing are broken down since anyone with a credit card or an internet connection can become your investor. While you get funding for your project, backers in return receive rewards or equity depending on the type of crowdfunding.

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

ReadWriteStart

Fortunately, the advent of the internet has changed the way startups get their funding, making access to a variety of financial resources easier than ever before. By taking the time to carefully vet each lender, and by being creative in how they approach securing their capital, these unique hardships can be mitigated.