“Allocating Equity Among Founders”
One of the biggest challenges to building a business is making sure that equity is fairly allocated among founding team members. Should each founder get an equal number of shares? Or should some founders get more and why?
Ideally, the allocation of shares would reflect the contributions that each founder makes at startup as well as those made over time. That is often difficult because the founders do not have a clear sense of what the company will look like over time, how much capital will be raised, how the founders shares will be diluted, or what happens if a founder suddenly leaves the business taking some or all of the equity with them.
In this session, you will learn how to:
- recognize current vs. future contributions
- set expectations based on a shared vision
- factor in the impact of financing and dilution
- make adjustments when the business changes