3 ms·
> Split the stock between the founding team evenly. I worked as the first employee at a now successful start up. They were 5 founders with each 20% of the shar
by fphilipe 13y ago
> Split the stock between the founding team evenly.
I worked as the first employee at a now successful start up. They were 5 founders with each 20% of the shares. What I heard from them after several investment rounds is that investors don't like evenly split stock and prefer that one of the founders has the most stock, even if that's just a single stock more than the other founders.
- philsnow 13y agoN/5 + 1 is just plurality. "most" == majority == N/2 + 1 which is it, is it just that VCs want to see that there is a designated leader among the founders, or do they want the relative amounts of stock to not ever become an issue for the viability of the startup ? mere plurality is risky, because any of the founders could sell their share to another, creating an ownership crisis where the nominal head of the company has a minority share.
- fphilipe 13y agoThanks for clarifying the semantics :)