article thumbnail

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

The Next Web

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. So, let’s say that one founder puts in $100,000 in seed capital, that could be worth 20 percent of a seed stage company’s valuation.

Cofounder 136
article thumbnail

Seeking CEO+team for VC-backed startup: Make America Functional Again

David Teten

I am only interested in talking with people who want to work full-time on this, once we have raised capital (or ideally before). The CEO is ideally a successful serial entrepreneur who has taken a startup all the way to an exit. We agree on an equity split, vesting, and initial compensation structure. This work is unpaid.

America 60
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Seeking CEO+team for VC-backed startup: Make America Functional Again

David Teten

I am only interested in talking with people who want to work full-time on this, once we have raised capital (or ideally before). The CEO is ideally a successful serial entrepreneur who has taken a startup all the way to an exit. We agree on an equity split, vesting, and initial compensation structure. We’re off to the races!

America 60
article thumbnail

How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

In addition to being a co-founder of NextView Ventures, Lee was an early member of PayPal and a founding team member at LinkedIn, so he speaks as both a former entrepreneur and a VC. And lastly, a chunk of our CEO Reid Hoffman’s equity was attributed to the fact that he provided the initial ~$750K in seed capital for the company.

Equity 315
article thumbnail

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

Agile VC

And lastly, a chunk of our CEO Reid Hoffman’s equity was attributed to the fact that he provided the initial ~$750K in seed capital for the company. Next, those that were forgoing some or all salary prior to Series A got an additional chunk for that.

Cofounder 255
article thumbnail

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

Agile VC

And lastly, a chunk of our CEO Reid Hoffman’s equity was attributed to the fact that he provided the initial ~$750K in seed capital for the company. Next, those that were forgoing some or all salary prior to Series A got an additional chunk for that.

Cofounder 173
article thumbnail

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 founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137