3 ms·

whats your suggested equity split?

• jasonshen 16y ago
  I think it really depends on how far along the idea/business guy has taken the project. If he has talked to tons of angels/VC's, or lots of potential customers, especially if those customers have indicated or even signed things saying they are ready to pay money to use the product, the split might favor the idea/business guy more than if he has just been "noodling" over something and has some "sketches" of what it might be.
  • haploid 16y ago
    This. The later you come into a given project, the less equity you would be justifiably entitled to. As to the original question, if you are starting from zero and you want a means of avoiding critical shareholder deadlocks, you can split 45/45/10 with the smaller portion going to a party both founders agree will be impartial. This person can be the initial angel, or perhaps a minor founder who accepts a smaller chunk in order to maintain his dayjob. You can also maintain 50/50 splits of ownership but still break executive deadlocks via a third vote by mandating a third seat on the board. This won't help fundamental shareholder deadlocking, but disagreements rarely go to the shareholder vote level.
• rguzman 16y ago
  I like this: http://sethgodin.typepad.com/seths_blog/2009/03/advice-on-equity.html http://sethgodin.typepad.com/seths_blog/2009/03/advice-on-eq... Though he makes it seem easier than it really is.