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Sharing the Wealth in a Technology Startup: How Much Stock is Enough?

March 3rd, 2009 Comment »

An interesting post from the interesting web site Xconomy.

Robert Beyster gives his views about how much stock a founder should keep and his answer is….

“8 to 10 percent of their company”.

This is quite an unusal piece of advice as most accounts on the topic try to maximize the stake. Beyster focuses on value creation and incentives to all parties.

This is consistent with what I teach about equity (see the post equity split in start-ups dated October 30, 2008).

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