Startup Professionals Musings
MAY 1, 2023
I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a cofounder or two. Giving a cofounder a salary won’t get you the “fire in the belly” you want. Each cofounder should get equity for value, based on these key variables: Lived a key role in a previous startup.
The Startup Magazine
MAY 13, 2022
Equity distribution among co-founders may be a complex procedure while starting any business. How you split founder startup equity can be even harder for a tech startup due to different roles and contributions from the founders. Founders often earn the greatest initial ownership, which is predictable.
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Feld Thoughts
SEPTEMBER 2, 2011
Jane and Dick, our fearless cofounders of SayAhh, have set up an accounting system and created their first set of financial statements. The founders each have common shares that will vest over four years. Bring Praveena in as a founder and offer 10-20% of the company as stock. Time to update the cap table.
Hunter Walker
FEBRUARY 20, 2024
Here the focus is on Pink Stuff, a British cleaning paste, which was #CleanTok mainstreamed to a quadrupling of revenue ($125m annually) and distribution to 55 countries. As Jared notes, To hedge against this predictable outcome, more founders should adopt longer vesting cycles for themselves and the earliest (big equity) employees.
YoungUpstarts
JANUARY 9, 2014
Whenever you distribute a new product into the marketplace you expose yourself to potential lawsuits. Vest your Equity over time. When searching for the right co-founders for your business it is essential that they possess a similar work ethic. This way you are protected against any unforeseen hazards to your business.
www.inc.com
SEPTEMBER 24, 2011
Chip Morse , cofounder and partner with Morse, Barnes-Brown & Pendleton P.C., He suggests granting the options on day one but making sure they vest only upon satisfactory completion of the project. That way, he says, "Vesting is an encouragement for the project to be completed.". based in Waltham, Mass. Toshiba Laptops.
Gust
DECEMBER 8, 2011
Likewise, founders can benefit from understanding basic characteristics of the overall legal structure, formation and governance documents, rights and responsibilities of team members, etc. Determine who will serve on the Board of Directors and in executive officer positions (usually founders). Newco, Inc.”)
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