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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Founding splits typically acknowledge that more senior folks or folks in C-level positions will have a larger founders’ equity percentage than more junior or staff-level co-founders. Capital Investment & Sweat Equity. Both of these are typically reflected in the founder equity split. Ideation/IP.

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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

Founding splits typically acknowledge that more senior folks or folks in C-level positions will have a larger founders’ equity percentage than more junior or staff-level co-founders. In other cases, some co-founders might forgo salary early on (if their personal circumstances permit) to earn an additional share of “sweatequity.

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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

Founding splits typically acknowledge that more senior folks or folks in C-level positions will have a larger founders’ equity percentage than more junior or staff-level co-founders. In other cases, some co-founders might forgo salary early on (if their personal circumstances permit) to earn an additional share of “sweatequity.

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‘Dear Abby’ Style Advice to Real Entrepreneurs

Startup Professionals Musings

I would like my sweat equity and existing IP to be the risk that I incur without also risking an asset that could easily represent the majority of my total assets. By separating the name in a lease arrangement, I was also hoping to be able to offer greater equity to a potential co-founder and early employees.

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How To Launch a Startup and Avoid Ending-up in Jail

Scott Edward Walker

Not only are there key contractual issues that must be buttoned-down (like vesting and IP assignment ), but also there is a minefield of laws and regulations that must be complied with. Introduction I love working with startups – and trying to protect founders and watch their backs.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Piercing the Corporate Veil – Sweat Equity Consulting. But much like becoming a co-founder, getting paid sweat equity is essentially becoming an investor in the company. If you did, why would you be consulting for sweat equity instead of investing as a VC or for yourself? GrasshopperHerder.com.

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Beware The Consultant

infochachkie.com

Very interesting article, at my Firm we share many of your insights, starting by performance based compensation (often linked to sweat equity). IP) is an ugly thing at a startup. And a year later, they helped us raising funds, proving this positionning was not that bad. link] Luis Rivera. link] Luis Rivera.

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