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There are often good reasons to have unequal split, having the product idea is NOT one of them. Ideas are a dime a dozen, and they are basically worthless witho
by ruler88 10y ago
There are often good reasons to have unequal split, having the product idea is NOT one of them. Ideas are a dime a dozen, and they are basically worthless without the execution ahead.
If the cofounder can give you a clear execution edge, then the said cofounder might deserve a higher share. Some examples include:
1) Existing business relationships with potential clients
2) Experience starting and selling startups (which gives you a big edge in raising capital)
3) Commanding expertise in the domain that you are in (i.e. start a video company with a hollywood producer)
4) Specialized technical knowledge (i.e. one of few PhDs in the world who knows how to build autonomous vehicles)
- runesoerensen 10y agoAll founders of a startup should bring something to the table and be able to carry their own weight. It doesn't matter if one founder has a clear edge in selling a company if there is no company/product to sell due to a lack of founders with the knowledge and expertise required to make it. If it's very difficult to define the "execution edge"/value of someone then that person probably shouldn't be a founder, or the other founder(s) undervalue that person. In either case this should be a major red flag. I fully agree that being the idea man is a bad reason for unequal splits. I'd also be more optimistic about the chances of resolving that issue vs the issues related to an undervalued/incompetent founder.