Founder Shares: How much equity compensation for each founder; ideas on how to split equity

[@richiemarianunez4557]

Love the Slicing Pie approach 👍

[@mycallsheet1283]

Learning, noting... Thank you for this channel!

[@Startupsos]

My pleasure!

[@jandominikfranz7460]

really some good points. I am discussing this with my cofounder partner today.

[@slicingpie]

Thanks for making this video. With regard to your concerns at 22 minutes. Slicing Pie participants wouldn't just take into account a bigger company's the salary will reflect the requirements of the startup position.

[@dtannenb]

Really like the way you presented this. I created a startup and will be seeking investment. I am bringing on a cofounder who will join the company in a full time roll as the COO. He has a full time job and can only give limited time until we get funded and he can come on board full time. I have also created an advisory board and have some people agreeing to be on it of which a couple have indicated their serious interest in joining the management team if we get funded. I am trying to figure out what to offer each in terms of shares. You have given me e some really good ways to approach this.

[@neelchauhan3597]

Very well explained. Thank you so much for lot of clarity I got. 👏👍🙏

[@LUXVRTOURS]

Very timely advice, thank you!

[@Startupsos]

You're so welcome!

[@mgalal85]

Thanks for this insightful video.

[@CandiceWilliams_]

Thanks so much for the content. I feel like I found a portion of the answer I’m looking for. I really just need a clear answer though. I just got offered a position of CMO as a co-founder and I have been offered 5% of the company but I’m not quite sure what I should ask for or expect as a salary.. because it’s a start up I’m trying to figure out how exactly do I get paid actual money.. 😅I’m afraid to ask because I don’t want to seem nervous and get duped for my lack of understanding. this is my first time stepping into a position like this. I’ve only ever done Marketing and Consulting. this is a whole new world to me. I would really appreciate it if anybody had any answers as to what I should ask for as an initial salary or how I should go about acquiring a payment outside of equity because we are in the pre-seed/seed round so the company doesn’t have much money. What should I ask as far as a salary agreement and expect it to scale overtime?

[@Startupsos]

Normally an offer would include both the stock and the monetary compensation, if a salary is part of the deal. But since it is a very early stage company, and they have little cash, then when they say "cofounder" they may mean someone who will, initially, work for stock-only. It's certainly a good practice for a startup to make that clear: is this initially stock-only, or is it stock + salary. It's certainly fair to ask the question: will your offer include a salary portion? If not, what is your plan for being able to fund salaries in the future? As to the question of what to ask for - part of the question is: what can the company afford given its cash position? You should certainly expect market-rate compensation at some point, but early on, most startups can't afford market-rate salaries.

[@Dr.Sheffield]

Thank you very much for all your great efforts and wishing you all the best ameen 🌹

[@StuartChignell]

agree that founder funds should be treated as separate investment. founders should get access to the same investment opportunities as investors.

[@zeetari7379]

Can anyone help with suggesting a video that addresses equity shares when buying and operating a franchise? Where there is a financial investing partner and another partner is investing time running the company

[@2367J]

Thinking about setting aside 15% for employees and offering my two cofounders 10% each in stock options plus using slicing pie multiples to create a 5-10 year I.O.U. to compensate their work on top (2x hourly rate and 4x money invested).

[@heatherdelaney5167]

With the slicing pie approach, wouldn’t the vesting period have to be 1 year? If my typically consulting fee is $300/hr and I obligate myself to work for a startup for 20 hrs per month this equates to 240 hrs over the year. At a 6M valuation, this would equate to 1.2% equity. But what if the vesting period is 2 years? Wouldn’t this dilute my equity in half when in fact I am contributing 480 hrs over two years which would be 0.6% equity each year over two years. Could you help me understand this a little more?

[@CandiceWilliams_]

Also the other cofounders didn’t sign their vesting agreements. Should I follow suit....And does that mean that Because no one signed the agreement does that means that we all would fully own our shares upfront.

[@Startupsos]

In my experience, the vesting agreement should be part of the stock purchase agreement - so it the agreement isn't signed, then you don't own the stock! If cofounders purchased their stock without having some kind of vesting agreement built into the purchase agreement, then I don't believe the company is protecting its stock the way I would argue it should.

[@levonavagyan7154]

Hello, I need contingency ip lawyer very urgent. I have big problem with one big website

[@Rich-fs7vx]

I was a minor at the time I was a co-founder of a company that has now grew to one of the most successful companies that in my view has literally changed the w😂ld ! I was told that some heavy weights were after the company and were going to screw me out of my % that had been agreed t on a contract we all signed with an attorney present at the time . The co. Was acquired due to a leverage buyout. I signed another contract stating that I was the one who created the name of the co. (Trademark) that is now one of the largest global brands ever. ❤ what can I do to find my stake in the company that surely may have never came to be if it weren't for my role played in the startup of the company?