5 Criteria For Splitting Equity In Your New Venture

Startup Professionals Musings

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. So the first question I usually get is what percent of the company or equity is that person worth? co-founders fair share new venture split equity

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How Much Founder Stock Should You Offer Co-Founders?

Startup Professionals Musings

Two heads are better than one, so the first task in many startups is finding a co-founder or two. The first question I usually get is what percent of the company or equity is that person worth? Giving a co-founder a salary won’t get you the “fire in the belly” you want.

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Enhancing the Co-founder Equity Split Conversation

Gust

Today we’re proud to release an updated Co-founder Equity Split tool. We released the first version back in November to help startup founders divide the ownership of their startup fairly and rationally among their team. With this release, the tool gives founders.

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Co-founder Equity Split: A New Framework to Objectively Divide Startup Ownership and Get Back to Building a Business

Gust

We’ve just released our free Co-founder Equity Split tool. It’ll give you a fair and objective recommendation about how to divide your startup’s ownership, so you and your co-founders will have a sensible, real starting point for this notoriously hard, crucially important conversation. Many startup founders find themselves lacking clarity and direction when it comes time to divide their.

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

Agile VC

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth.

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7 Startup Co-Founders To Avoid And Keep Your Sanity

Startup Professionals Musings

In a moment of crisis, you may be tempted to take on the first person expressing interest as a co-founder. Investors routinely decline to fund co-founders who are siblings, or in a romantic relationship. “We I’ll put in the money, if you put in the sweat equity.”

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

Agile VC

I like to say that “there are only co-founders” — it’s extraordinarily rare for a successful business to have just a sole founder. But not all co-founders are equal in terms of title, ownership, responsibilities, and so forth.

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The Co-Founder Mythology

Both Sides of the Table

I covered what I call “the co-founder mythology.&# Either you’re not technical and you think you need a technical co-founder or vice-versa. It is increasingly popular to have “founder dating&# or “startup weekend hackathons&# of some variety or the other. Hire your co-founder. Give them a large sum of equity. Truly treat them like a co-founder. Publicly call them a co-founder.

How to pick a co-founder

venturehacks.com

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS How to pick a co-founder by Naval Ravikant on November 12th, 2009 Update : Also see our 40-minute interview on this topic. Picking a co-founder is your most important decision. How to pick a co-founder?

Finding Your Co-Founders

techcrunch.com

The number one question you all asked after reading my last blog post about starting a business from scratch was “how do I find my co-founders?&# And therein lies the problem in finding co-founders for that startup you’re dying to launch. It’s most comfortable to hang out with people like ourselves, but those are exactly the folks you probably don’t want to co-found a startup with. Finding Your Co-Founders [.]

7 Startup Co-Founders That Can Lead to Conflict

Startup Professionals Musings

First you have to be clear on who you are, and who you can co-exist with, what complementary skills and resources you need, and what decisions in the business you are willing to relegate. Investors routinely decline to fund co-founders who are siblings, or in a romantic relationship. “We

Are You Getting Your Fair Share Of Startup Equity?

Startup Professionals Musings

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a co-founder or two. So the first question I usually get is what percent of the company or equity is that person worth? entrepreneur fair share startup startup equity

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10 Partner Qualities to Test Before Sharing Equity

Startup Professionals Musings

A while back I talked about how and where to find a co-founder in “ For a Startup, Two Heads are Always Better Than One.” In this context, I’m broadening the definition of partner from co-founder to “business partner.”

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Excerpt from "Do More Faster" - Avoid Co-Founder Conflict by Dharmesh Shah

ReadWriteStart

Do More Faster: TechStars Lessons to Accelerate Your Startup is the new book by David Cohen , founder and CEO of TechStars, and Brad Feld , managing director of Foundry Group. Below is his chapter, Avoid Co-Founder Conflict. Yes, that's right--even co-founders can be terminated.

Finding a Technical Cofounder for Your Startup

SoCal CTO

I've recently received several emails from people looking for a technical cofounder for their startup. Make sure you go through the 32 Questions Developers May Have Forgot to Ask a Startup Founder. Of course, you are looking for something a little different - a technical Cofounder.

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Guide to Finding a Technical Co-Founder | Vinicius Vacanti

viniciusvacanti.com

Home About Contact Me How To Make It as a First-Time Entrepreneur Vinicius Vacanti Guide to Finding a Technical Co-Founder September 7, 2010 | View Comments Steve Job's Technical Co-Founder “I’ve got this HUGE idea.

How and where to find a co-founder for your startup

The Next Web

In many cases, these entrepreneurs are on the hunt for co-founders to help them build their businesses. I previously wrote about various roles and responsibilities within a startup’s management team , so figure out what role your desired co-founder can fill.

Technical Co-Founders Are A Myth

blog.captainrecruiter.com

Technical Co-Founders Are A Myth. Two years ago I got the bug to do an online recruiting startup and I began the hunt to find a technical co-founder - a software engineer who works for no cash - to help me build my dream website. Technical Co-Founders Are A Myth.

Finding The Perfect Startup Co-Founder

ReadWriteStart

Kaviani co-founded CoFoundersLab less than tw Shahab o years ago with the aim of bringing entrepreneurs together to launch startups. To find out more about how co-founders can help startups succeed,and how founders can find the right partners, I talked with Kaviani and Julie Edge, Ph.D.,

Splitting Startup Equity for Your Piece of the Pie

Startup Professionals Musings

One of the first tough decisions that startup founders have to make is how to allocate or split the equity among co-founders. Another common “failure to start” situation I see is one where the “idea person” insists that the idea is 90% of the value (and 90% of the equity).

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How to Find Startup Co-Founders Online and in the Real World

VC Cafe

So how do you go about finding co-founders and early members of your startup? VC Cafe took a look at the most promising sources for finding co-founders, both in the “real world” and online. . Who are the co-founders and what have they previously done?

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.

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CTO Founders / Cofounders

SoCal CTO

I just got done reading a post by Roger Ehrenberg Advice for CTO Founders: Don't Let Business Kill the Business where he suggests that CTO Founders should not move too early in finding a business cofounder: Too often, however, I have found CTO / Founders paired with business people who not only don't add value, but frequently detract from the value of the business. Mark Suster defines founder vs. cofounder a bit more in Most Common Early Start-up Mistakes.

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Seven Startup Co-Founder Partnerships From Hell

Startup Professionals Musings

First you have to be clear on who you are, and who you can co-exist with, what complementary skills and resources you need, and what decisions in the business you are willing to relegate. Investors routinely decline to fund co-founders who are siblings, or in a romantic relationship. “We

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? How many founders are too many?

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The pros and cons of having co-founders

NZ Entrepreneur

We often see single founders slogging it out on their own. Founders can be reluctant to give up equity and control of their idea to bring in a co-founder alongside them to share in the decision making, as well as the highs and lows. Do you really need a co-founder?

Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the foundersequity and addressing the case where one of the founders provides the initial seed capital for the business. Jane and Dick each brings a similar level of skill and capability to the business, making it easy for them to agree to a 50/50 equity split.

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A brief history of founders and co-founders

The Equity Kicker

To be clear I’m a big believer in the power of teams, but we’ve had some success here backing solo-founders and then helping them find a co-founder shortly after that. I think that’s why having co-founders has become more important recently.

10 Money Questions To Ask Your Potential Business Partner

YFS Magazine

Before you start a business with your best friend or split equity with co-founders, tackle some serious financial questions. Finance Grow business finance business partners cofounders money partnerships

If I join a company as a co-founder, should I ask for a board seat?

Gust

It doesn’t give you more cash compensation, more equity ownership or more direct control over the operating business. If you are going to be a true co-founder (and 20% equity sounds like it), sharing over-all decision making about company direction, strategy, financing, staffing, etc. with one or more co-founders, and you see that role continuing in the future, as the company’s President or Chief Operating Officer, then being on the board might make sense.

Everything you always wanted to know about cofounders

Up and Running

Do I need a co-founder? These are some of the most frequent questions about co-founders that I have heard from entrepreneurs over the years. Do I need a co-founder? How many co-founders should I have? Can I fire a co-founder?

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How Much Equity a Technical Cofounder Should Get - Nathan Hurst's Blog

blog.nahurst.com

The graphic below balances the risks cofounders take with their relative contributions to help answer this question. Technical cofounders, remember that the number of shares or options doesnt matter, just your percentage ownership (what the chart shows).

Founder's Dilemmas: Equity Splits

Startup Lessons Learned

The following is an excerpt from HBS Professor Noam Wasserman’s new book, The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. On average, the founders who keep the most control over their company make the least amount of money.

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You Don't Need a Co-Founder

This is going to be BIG.

I've heard a lot of VCs tell founders they need co-founders--and that they wouldn't look at a business at a very early stage without a co-founder. A lot of accelerators treat solo founders the same way--making it an implied requirement to participate. Would you have not wanted to back Jack Ma at Alibaba because he didn't split the majority of his equity with a partner? but you do need a team.

Mark Attanasio, Toronto Executive and Hillcrest Merchant Partners Co-Founder Discusses Entrepreneurial Leadership, Venture Capital Investment

Hearpreneur

Toronto’s Mark Attanasio , co-founder of Hillcrest Merchant Partners, has years of significant experience with advising clients on mergers and acquisitions raising capital and navigating the landscape of general capital markets.

How to calculate the equity split between co-founders in a startup

The Next Web

There are a lot of variables to go into calculating a fair equity split a startup team. If people are funding the business, they should get a premium because at the end of the day, cash funding founders are acting no different than a seed stage investor.

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Dear elizy: How should I split equity with my co-founders?  And how will that affect raising a seed round?

Hippoland

Dear elizy : I started a company in school with two co-founders. We are trying to decide how much equity to allocate to each person. I would like to split the equity equally, since it seems only fair. But, Ada wants to split the equity 50% her, 20% Bob and 20% me with a 10% option pool. Although there are no set numbers, your professor should be considered as an active advisor or a co-founder who has left rather than a full-time co-founder.

Does Your Startup Need A Technical Co-Founder?

ReadWriteStart

But when it comes to core technical skills, more and more entrepreneurs are opting to partner with technical co-founders rather than hiring someone for an in-house position. Give up equity in your company. In today’s startup landscape, practically everything can be outsourced.

Finding The Perfect Startup Co-Founder

ReadWriteStart

Kaviani co-founded CoFoundersLab less than two years ago with the aim of bringing entrepreneurs together to launch startups. To find out more about how co-founders can help startups succeed,and how founders can find the right partners, I talked with Kaviani and Julie Edge, Ph.D.,

Equity-Only CTO and Equity-Only Developers

SoCal CTO

I had a recent email dialog with the founder of a company looking for a CTO for their startup. And I tried to evaluate the idea and figure out: What did the founder really need here? Was it a Startup Founder Developer Gap ? And do I fit as a Part-Time CTO , Technology Advisor , CTO Founder , Acting CTO ? Understand where they were in terms of being able to pay or was this equity-only (sweat equity only). There are cases where I will do equity-only deals.

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DealMarket.com – Making Private Equity A Big Deal

YoungUpstarts

Online platforms that connect startups and entrepreneurs are common, but one that connects private equity professionals? But DealMarket ( www.dealmarket.com ), launched in March this year, looks set to be the way that private equity and investment types will work in the future.

Should you co-found a company with your buddy? And how do you split the equity?

David Teten

If you’re talking with cofounders about launching a new business, you’re fundamentally recruiting someone to take the job of partnering with you for the next decade. I see a lot of founders who do less due diligence than I think ideal before making that long-term commitment. Once you have established that you’ve identified the right cofounder(s), the biggest pain point is typically and unsurprisingly the equity split. I recommend: Splitting Equity With Your Co-founder?

What is the best way to divide up ownership in a startup?

Grasshopper Herder

When considering this issue, many people will focus on incentivizing the founders as well as issues of equality and equity. I would recommend a deep understanding how roles and responsibilities will be divided prior to discussing the equity split. Finding Co-Founders Investment co-founders equity vesting schedule