The article discusses important considerations for founders when distributing equity in a startup. It highlights the significance of open conversations about contributions, roles, and goals to determine an appropriate distribution. While equal splits are common, founders should consider factors such as experience, skills, and the founder who brought in additional co-founders. Unequal splits may be reasonable in certain scenarios, such as when one founder has a more significant role or brought in the initial idea. It is crucial to discuss personal life goals, potential future scenarios, and the value each founder brings to the company. The CEO generally receives a larger equity stake, reflecting their role and value creation. The article emphasizes the importance of discussing equity splits early on to avoid conflicts and ensure the happiness of the founding team.
Distribute Equity in startup By DeMarcus Williams
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