How would you personally go about splitting startup shares amongst

>>1501570
>actually sharing a startup with friends
hahahahah oh boy.

>>1501609
Where the fuck else am I meant to find people I can trust?

>>1501570
>startup
>friends

oh boy... good luck with that.

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>>1501570

Honestly this is one of the least important things you'll ever have to do in a startup.

The sentiment of those above is that most people are shitbags about work and they're right.

Your accountability has to be fucking better than on point. The massive amount of paperwork and records required to handle a multi-founder startup.

Most are greedy naive and over value their contributions.

However if you are one of the lucky rare few to have friends who put their money and time where their mouth is; then consider yourself blessed.

As a thought experiment I'd structure it something like this.

First you have to figure out what exactly the workload is gonna be.
Divide it appropriately.
Set a provisional distribution and key benchmarks for divestment.

Then only after the work is done, something has shipped and you're preparing the next round and everyone is on board or gone will the shares divest.

Seriously take copious notes about people and their contributions, b/c after this giant mess gets off the ground you're gonna want to cut up the pie, except half the mongoloids have already eaten their share and borrowed some more pieces from others and everyone is fucking pissed b/c they're not getting more. b/c there is only 1/4 pie and all the ingredients are gone.

Sweat equity is worth nothing until its worth something so you have to structure it that way with clear deliverables. They can't just punch hours on a clock. Frankly most of these guys should just be given a bonus and that's it.

If they're backing it up with capital, and they expect that money back its a loan not equity.

All that is before management headaches caused by this.
You need to establish clear voting rights and may even need two classes of shares to get this to even work b/c any disagreements are going to need to be settled, quickly.

>>1501650
You cannot trust friends with money. As for shares, let's say a hypothetical split of 1m shares:

Founder keeps 51% to start.
40% goes to venture capital
9% reserved for employee benefits

From there any additional splits come from the founder.

What are we talking about? Are you trying to found a lasting company? Or a start-up that will be considered a failure if you haven't sold it for dozens of millions within 4 years?

What are the prospects? How much profit is expected? How large is the chance of failure?

Are you planning to take on VC later on?

How many people are involved?


There's no one-fits-all solution. If you're particularly hard on cash, then the price of equity just went up. If people throw money at you, then your labour and leadership is worth more. Is it a fool-proof story made by veterans? Then equity doesn't deserve much of a risk premium. Is it a venture built on hopes and dreams of incompetent first-timers? Then equity will demand a majority.
How desperate are you? Willing to give up controlling interest? Maybe start slow. Take it step by step. Found with a very small core team (no more than a handful) and agree on a good ratio that'll stay the same between you forever. Then with each new equity partner you bring on you negotiate individually. It's just a numbers game without emotions. Put a value to your company - If he buys that value, his % stake is just an easy division (new equity/(value+new equity)).

>>1501570
Split it all even and write up a contract.

Also, say goodbye to your friends and hello to new business partners.

Starting a business with friends is like loaning money to family. You shouldnt ever do it. But, at least you're trying. I wish u well op.

>>1501650
Lol, i don't know anon. One of my best friends is a professional athelete and we didnt even get the business cards ordered before i was done with his shit... good luck.

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>>1501922
Solid input anon. You involved in your own businesses or still a wagecuck like me?

>>1501922
>If they're backing it up with capital, and they expect that money back its a loan not equity.
>Loan not equity

People just give out free loans where you're from? I'm pretty sure backing a company up with capital is the definition of an investment.