article thumbnail

How to calculate the equity split between co-founders in a startup

The Next Web

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. So, a CEO or CTO, would get a much higher stake than an office manager or a graphic designer, as an example. You can follow George on Twitter at @georgedeeb and @RedRocketVC.

Cofounder 136
article thumbnail

Should You Share Equity with Consultants?

www.inc.com

Should You Share Equity with Consultants? Science and Technology Technology. Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We The 2011 Inc. 500|5000 List. The 2011 Top Lists. 500|5000 Conference.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

A Part-Time CTO - In-House or Outsource?

blog.aparttimecto.com

A Part-Time CTO Technology. A development partner is an consulting company that works very closely with you, similar to an internal development staff. Thus, they typically take a vested interested in ensuring whatever they build will be able to evolve with the company. In Plain English.

article thumbnail

How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

How long should people vest – four years? Investors routinely subject founder shares to vesting, but there is no rule that says that founders cannot, or should not, impose vesting on themselves. And the vesting doesn’t necessarily need to be time-based either. Five years? Buffer Pin It Digg Digg. PHP Veteran.

Equity 62
article thumbnail

A VC: Employee Equity: How Much?

www.avc.com

I got this formula from a big compensation consulting firm. But it is based on a common practive in compensation consulting. Startups should be able to dramatically increase the value of their equity over the four years a stock grant vests. We have developed a formula that we like to use for this purpose.

Equity 64
article thumbnail

Why is there such a large founder to early employee equity drop-off? - Quora

www.quora.com

Update Link to Questions, Topics and People Add Find Questions, Topics or People Comment Jason Crawford , Co-founder & CTO at Kima Labs 25 votes by Abinash Tripathy , Anon User, Dean Blackburn , (more) Chris Dixon says it all in a post titled "There Are Two Kinds of Pe. more) Sign up for free to read the full text.

Equity 40
article thumbnail

Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. Vlad and his team at DarwinApps are considering launching DevFund — their attempt at cofounding companies by developing the MVP technology.