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.

How to Find a Co-Founder

How to Change the World

After the fact, people may recognize one founder as the innovator, but it takes a team to make a new venture work. Derek Sivers, the co-founder of CD Baby, said it best: “The first follower is what transforms the lone nut into a leader.”.

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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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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.

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?

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

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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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.

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?

Guide to Finding a Technical Co-Founder

Vinicius Vacanti

Steve Job's Technical Co-Founder. I just need to find a technical co-founder.&# I write this post to put you out of your miserable technical co-founder search and give you some realistic options. The Challenge of Finding a Technical Co-Founder. To find a great technical co-founder, you need to convince them of the following: Your idea is better than all of their ideas. You are worth 50% of the equity of the company.

7 Co-Founder Strategies That Can Be Very Painful

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.”

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.

Founder's Dilemmas: Equity Splits

www.startuplessonslearned.com

Founders Dilemmas: Equity Splits. The following is an excerpt from HBS Professor Noam Wasserman’s new book, The Founders Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. How should founders deal with such developments? Lessons Learned.

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?

Dividing Founder Equity in the Very Beginning

Andrew Payne

I’ve probably had a thousand or more discussions about startup equity: figuring out how much to offer, negotiating, or advising others. In practice, most equity grants within a company are driven by broad calibrations with existing employees. But, how should founders divide things up in the very beginning , where none of these internal reference points exist? And, how can founders talk about percentages before any funding?

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.

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.

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 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.”

Getting the Co-Founder Decision Right

Hazard Lights

In my recent list of #ifiwereafounder tweets, I started with the assertion that "I would aggressively seek out one, but no more than one, co-founder to complement my deficiencies". This generated a number of questions from founders about the ideal composition of a founding team. At face value, the first question is why have a co-founder, and if you do, why only one? First, it is worth recognizing that founders form the soul of any start-up.

Equity basics: vesting, cliffs, acceleration, and exits

The Startup Toolkit

false As a cheatsheet, the “normal” equity structure is: Founder terms: 4 year vesting, 1 year cliff, for everyone, including you. Getting equity structures right. When it comes to equity terms, there are only 3 things to understand: vesting, cliffs, and acceleration.

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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Mathematical vs. Economic Dilution of Startup Equity: Thinner Slices of an Extra-Large Pizza

Gust

Let’s get right down to business: Dilution of founders’ and other early shareholders’ equity in startups is frequently a subject of intense interest and debate. Back from a hiatus, it’s time to venture forward once more.

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

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.

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.”

How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

How to Divide Equity to Startup Founders, Advisors, and Employees. The part that I’d like to zero in on is when you’ve got a high growth company what are some of the best practices out there to distribute equity to the founders, advisors, and employees?

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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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 [.]

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.

7 Partner Relationships That Can Kill A Good Startup

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.”

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.,

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.,

Why you can('t) recruit a technical cofounder

blog.launchbit.com

cofounders. technical cofounder. Why you can(t) recruit a technical cofounder. In particular, potential technical cofounders indicated they wanted to see successful entrepreneurial experience and a complementary skillset that would be brought to the table. Posterous.

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.

What is Sweat Equity Worth?

www.entrepreneur.com

What is Sweat Equity Worth? Determining how to value sweat equity is key when negotiating with investors and employees. Entrepreneurs often ask me how to value the sweat equity invested in their startup. But over the years, I have come to realize that sweat equity isn't the same thing as market value for your startup. Investors have no idea how to value sweat equity, and I now believe it's a bad idea to let them tell you how to do it.

Adding a Co-Founder In 140 Characters Or Less

FairSoftware's Blog

A question I get frequently is “how to formalize bringing a co-founder on board.&# Here’s how you do it in one tweet: @joe I expect this co-founder position to be worth ~30% equity. You need to make the potential co-founder a promise. By putting it in “writing&# (a tweet), you are giving enough rope for the co-founder to sue you if you completely abuse the situation. I love advising early-stage startups.

Finding A Co-Founder: Making It A Snap

UC Berkeley

Thanks to guest blogger Orion Parrott (EMBA ’14), Founder & CEO of Lendsnap . I’ve applied many of these same principles to one of the most painful and time-consuming parts of founding a company—finding a co-founder. Over the course of the past year, I’ve had in-depth, lengthy discussions with 10+ potential co-founders, both from referrals and other sources. He had me draw up agreements, review them with lawyers and negotiate equity.

Things to Avoid When Recruiting Co-founders

grasshopperherder.com

If you’re waiting for a technical co-founder to put up a landing page with signup form, you’re lazy. Show Metrics If you ask me to be a co-founder or even just a consultant, you’re essentially asking me to invest in your company with my time.

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3 Biggest Mistakes When Choosing a Cofounder

OnStartups

After spending a significant portion of the last couple of years talking and collaborating with countless entrepreneurs (through FounderDating ) a few clear themes have emerged around partnering with cofounders. Only a cofounder will feel the high and lows like you do.

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