Remove Operations Remove Technical Cofounder Remove Valuation
article thumbnail

5 Keys To Negotiating Your Fair Share Of Any Startup

Startup Professionals Musings

Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Cofounder 435
article thumbnail

5 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

I always tell entrepreneurs that two heads are better than one, so the first task in many startups is finding a cofounder or two. Giving a cofounder a salary won’t get you the “fire in the belly” you want. Each cofounder should get equity for value, based on these key variables: Lived a key role in a previous startup.

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

How Much Founder Stock Should You Offer Co-Founders?

Startup Professionals Musings

Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Cofounder 261
article thumbnail

5 Criteria For Splitting Equity In Your New Venture

Startup Professionals Musings

Co-founders only able to work part-time, with responsibility and major income sources elsewhere, don’t carry the same risk as others with more operational responsibility. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Equity 238
article thumbnail

Tune In, Turn On, Drop Out – The Startup Genome Project

Steve Blank

They also over-invest in solo founders and founding teams without technical cofounders despite indicators that show that these teams have a much lower probability of success. Investors who provide hands-on help have little or no effect on the company’s operational performance. Technical-heavy founding teams are 3.3x

article thumbnail

14 Interesting Findings From The Startup Genome Project

YoungUpstarts

They also over-invest in solo founders and founding teams without technical cofounders despite indicators that show that these teams have a much lower probability of success. Investors who provide hands-on help have little or no effect on the company’s operational performance. Technical-heavy founding teams are 3.3x

article thumbnail

8 Steps To Starting A New Venture With Limited Funds

Startup Professionals Musings

Those that do it right also have the unprecedented opportunity to join the elite ranks of 250 unicorns (relatively new companies with a current valuation of over $1 billion). Advisors and investors need to see your whole story in as few as ten slides. Thus you have to do your homework to stay ahead of the crowd.