2 ms·
Definitely discuss this earlier rather than later. How much equity to give is very different for every situation. The fact that the idea was yours isn't worth
by fvryan 15y ago
Definitely discuss this earlier rather than later.
How much equity to give is very different for every situation.
The fact that the idea was yours isn't worth a whole lot in terms of equity. Maybe it gives you a 5% premium.
More importantly is how much work your friends are putting in. And if they are leaving their jobs to work on this project.
To protect yourself you will want them to have "vesting" meaning their equity accrues over time.
A really easy way to apply vesting is to just promise them 0.25% - 3% equity for each month they work on the project and then have a cap of 20%, 30%, 40%, 50% or w/e you decide. Typically vesting periods can last 3-5 years.
- fvryan 15y agoAlso read this. http://www.geekwire.com/2011/wrong-answer-5050-calculating-cofounder-equity-split http://www.geekwire.com/2011/wrong-answer-5050-calculating-c...