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How to split startup equity between startup founders when starting a new business

The Startup Magazine

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.

Equity 140
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Why are Revenue-Based VCs investing in so many women & underrepresented founders?

David Teten

A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use.

Revenue 60
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The iconic VC-Backed founders are all White & Asian men. So why invest in diversity?

David Teten

(co-written with Katherine Boe Heuck , a MBA candidate at MIT Sloan (class of 2022); past intern at Versatile VC ; and a current intern at Metaprop NYC.). All of the 40 companies’ 92 founders were male. Of the 19 Western Europe/Israel-based founders, all were white. Of the 43 U.S.-based Of course, this dataset is incomplete.

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Why Uber is The Revenge of the Founders

Steve Blank

Why do these founders get to stay around? Because the balance of power has dramatically shifted from investors to founders. — Unremarked and unheralded, the balance of power between startup CEOs and their investors has radically changed: IPOs/M&A without a profit (or at times revenue) have become the norm.

Founder 245
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4 Accounting Tips For Startups And Small Businesses

YoungUpstarts

by Swapnil Shinde, Co-Founder and CEO of Zeni. To avoid these common pitfalls — and set up your finances to support your business as it grows — follow these four accounting tips for startups and small businesses. Don’t rely on spreadsheets to track revenue and expenses; start using accounting tools as soon as possible.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. II: Who are the major Revenue-Based Investing VCs? IV: Should your new VC fund use Revenue-Based Investing?

Equity 78
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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

Does the traditional VC financing model make sense for all companies? A new wave of Revenue-Based Investors are emerging who are using creative investing structures with some of the upside of traditional VC, but some of the downside protection of debt. So what is Revenue Based Investing? Absolutely not.

Revenue 60