Kyle
Back in October we had a great guest post from Mike Moyer the author of “Slicing Pie: Funding Your Company Without Funds”. In that guest post Moyer talks about how to divide equity in a startup, fair and square. If you haven’t read it, it’s definitely worth the read.
Co-founder contribution is one of the biggest things that co-founders argue about when they are distributing equity. I’ve been down this road three different times and have learned some pretty important lessons along the way. My co-founder at nibletz.com, Nick Tippmann, compliments me and the business in ways that will hopefully make nibeltz succeed far beyond our wildest dreams.
Every startup isn’t so fortunate. Many startups and cofounders find that other people on their team fit into one of these four categories, at least in their first time around. Scott Annan at startupplays.com did a great job of summarizing them:
The Disappearing Cheerleader
Initially excited and enthusiastic about how your solution will change the world, they start missing meetings, not following up on things they said they’d do, are slower responding to emails. They’re on the to the next shiny object, and things get awkward.The “All In If It Works Out”
Cautious from the beginning, you get the impression that this character is hedging her bets… Putting in enough time to be part of the team if it takes off, but keeping that day job, not changing their Linkedin Profile, or forgetting to mention your new super-awesome project at the latest meetup.The Big Talker
This is the uber-connected person who can open any door with their massive contact list. But once you need their help, the contacts aren’t so quick to help, or aren’t as strong as you were led to believe. Or, worse, excuses are made why you’re not really “ready” for intros yet – and you get the feeling you’ll never be “ready” enough.Allergic to Work
Despite an epic startup weekend, life gets in the way of getting stuff done.It happens. And if you’ve ever started a company, it’s probably happened to you. Next is the awkward conversation “that-should-have-happened-a-long-time-ago” and ensuing equity renegotiation that at worst can kill your startup – and at best dilute your company unnecessarily.
