Equity split in start-ups
October 30th, 2008Following a few case studies I posted earlier this year (Kelkoo, Skype, mysql), here is a more generic analysis about the process of equity splitting. The document is a pdf file I have used a number of times with students, entrepreneurs and I think it is helpful even if not new. At the end, there are also cap tables of other famous and less famous start-ups.
From the inception where a few founders share the initial equity between them to the exit (IPO or M&A) through a possible number of financing events, shares of a start-ups will be shared, distributed among founders, employees and investors. It is one of the most important decisions in a company’s life and should be handled with care.
Tags: Equity, Founder, Start-up, Venture Capital
November 24th, 2009 at 8:11 am
[...] le sujet important du partage d’equity entre fondateurs que j’avais abordé dans un past post. In that post is mentioned an article I did not know by Paul Graham: The Equity [...]
April 12th, 2011 at 9:04 am
[...] member not more than 0.5-1%. (As a comparison, I had mentioned in documents in the past (including Equity Split in Start-ups) that a CEO is about 5-10%, a VP between 0.5 and 2% and a technical director about 0.2%. The rule [...]
July 15th, 2011 at 5:00 pm
This web site does not render properly on my android - you may want to try and repair that