Founder team dynamics · Founders

Initial shareholding structure of a startup with a three cofounders?

Ugur Cirak A New Journey Starting From Japan:

April 20th, 2017

If I have a startup where I have the idea owner who is also the leader of the project and a full stack developer and a sales person to make the startup founding team, how do you think they should share the startup equity between them, and if any of them is entitled to get a minimum living salary how this should affect the share holding structure?

Kevin Carney Content Marketing works, but needs better tools.

April 20th, 2017

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Rodrigo Cauduro Techincal Marketing Guy looking into Extracting valuable information from Big data

April 20th, 2017

I think you should try and make a split that makes everyone happy and that is fair. Make all the shares vesting so that unhappy people can leave without imploding the startup. If they make a salary, price that into their shares... It sounds like the idea owner has a lot of stakes in the company and should probably receive more equity...

If you want more scenarios and some research around the subject I can recommend the book:

Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup (Kauffman Foundation Series on Innovation and Entrepreneurship)

Eli Epstein Head of Content at CoFoundersLab

April 20th, 2017

Hi Ugur,

You want to make sure that you are considering EVERYTHING. So not just who is doing what and how much capital they're putting in but also factors like the risk, the value of an idea, and different skills. If you don't factor in EVERYTHING you leave the door open for a situation where one cofounder feels after a while that they "deserve more."

CoFoundersLab offers a course on how to assess every factor and input them into a custom model that fairly splits equity and leaves all cofounders satisfied, no matter the business type.