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I disagree with Seth. Any discussion about who contributed what and who more may absorb a lot of energy from the startup. Founders starting together should have
by mattjung 18y ago
I disagree with Seth. Any discussion about who contributed what and who more may absorb a lot of energy from the startup. Founders starting together should have the same equity because they can expect from each other to give their maximum to drive the success of their company. And they will have the same motivation and interest to give their maximum.
- swombat 18y agoThat's a nice idea in theory but it ignores the practical fact that contributions will be different, people's commitment will vary over time, and people's expectations will clash.
- mattjung 18y agoThere is a study that suggests that equal equity among founders leads to more stable and successful startups: http://founderresearch.blogspot.com/2006/12/equity-split-results-part-2.html http://founderresearch.blogspot.com/2006/12/equity-split-res...
- medianama 18y agoThe problem with same equity is that there is no boss. I am not sure if democracy works too well in start ups.
- mattjung 18y agoBut I am sure that dictatorship will lead directly to failure ;) Conflicts between founders must be resolved by good arguments not by outvoting...
- medianama 18y agoNo doubt about that. But there has to be one guy whose word prevails... trying to do everything by consensus wastes a lot of time and doesn't always lead to best decision