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"I recommend that you start a company by yourself and own 100% of it. Once it’s set up I recommend bringing in a co-founder and giving them 10-30% of the compa

"I recommend that you start a company by yourself and own 100% of it. Once it’s set up I recommend bringing in a co-founder and giving them 10-30% of the company depending upon when you bring them in. I advocate treating them like a co-founder in every way except when they join and how much equity they get." I'm glad he said this. This has been my plan, not so much by design but just by circumstance, but it's nice to have validation.

pchristensen 17y ago
Ditto. I hadn't heard anyone specifically endorse this before, but it's what circumstance gave me with my startup. It's a good way to do a 2-person startup with no danger at all of a power deadlock.
- Periodic 17y ago
  I've heard the recommendation to never equally share power or you will risk deadlock. Always agree to either have a neutral arbiter or go with the old 51/49 split so that if it ever comes down to it the issue can be decided decisively instead of resulting in delays and over-compromises.
  - nathos 17y ago
    Is it possible that having to use one's 2% majority share to force a decision is just as bad as a deadlock? (as far as affecting morale, a founder leaving, etc.) We've had the 51/49 split driven into our heads for so long, I wonder if anyone out there can share the ramifications of actually having to use it.
    - dstorrs 17y ago
      My co-founder and I took a different tack: "50/50 and a quarter". - 50/50 split on equity - Decisions are made by consensus when possible (so far, always). - If we absolutely cannot agree, we flip a coin (a quarter) - If either of us decides to leave the company, the other must buy him out. So, if we ever actually get to a coinflip decision, we just ask ourselves "do I care about this so much that I'm willing to walk if I lose, or will I live with it?" Whatever the answer is, the decision can go forward.
      - nathos 17y ago
        I like this solution. A lot. Thank you for sharing!
      - eru 17y ago
        Do you use the shotgun clause for buyouts? (http://en.wikipedia.org/wiki/Shotgun_clause http://en.wikipedia.org/wiki/Shotgun_clause)
  - wlievens 17y ago
    I have no experience with this, but a 49/51 split seems weird to me. It basically means the guy with 49 spends as much time/money/effort as the other guy, but never gets a say? I'd rather be in for 30% and invest less, or something.

pchristensen 17y ago

Ditto. I hadn't heard anyone specifically endorse this before, but it's what circumstance gave me with my startup. It's a good way to do a 2-person startup with no danger at all of a power deadlock.

Periodic 17y ago
I've heard the recommendation to never equally share power or you will risk deadlock. Always agree to either have a neutral arbiter or go with the old 51/49 split so that if it ever comes down to it the issue can be decided decisively instead of resulting in delays and over-compromises.
- nathos 17y ago
  Is it possible that having to use one's 2% majority share to force a decision is just as bad as a deadlock? (as far as affecting morale, a founder leaving, etc.) We've had the 51/49 split driven into our heads for so long, I wonder if anyone out there can share the ramifications of actually having to use it.
  - dstorrs 17y ago
    My co-founder and I took a different tack: "50/50 and a quarter". - 50/50 split on equity - Decisions are made by consensus when possible (so far, always). - If we absolutely cannot agree, we flip a coin (a quarter) - If either of us decides to leave the company, the other must buy him out. So, if we ever actually get to a coinflip decision, we just ask ourselves "do I care about this so much that I'm willing to walk if I lose, or will I live with it?" Whatever the answer is, the decision can go forward.
    - nathos 17y ago
      I like this solution. A lot. Thank you for sharing!
    - eru 17y ago
      Do you use the shotgun clause for buyouts? (http://en.wikipedia.org/wiki/Shotgun_clause http://en.wikipedia.org/wiki/Shotgun_clause)
- wlievens 17y ago
  I have no experience with this, but a 49/51 split seems weird to me. It basically means the guy with 49 spends as much time/money/effort as the other guy, but never gets a say? I'd rather be in for 30% and invest less, or something.