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Three of us have been thinking about a startup for a few years and I think we are finally going to get started.
- Founder A
- Business background
- No Tech Expertise and no knowledge of the space
- Will assist heavily on financials (CFO) and the founding stages (e.g. pitch deck)
- Will not be his full time job. Will take care of accounting/financials, but as needed. Will give financial advice to other two founders.
- Founder B
- Tech Background with extensive network in this space
- Co-CTO / Co-CEO
- Will work full-time and will take out a salary once company is founded
- Founder C
- Also Tech Background with extensive network in this space
- Co-CTO / Co-CEO
- Will work full-time and will take out a salary once company is founded
My initial thought is that all three founders would split evenly to have 1/3 of the companies shares. (Please give me your thoughts if this is not a good idea for whatever reason)
Clarification edit: For various reasons, this company will not start for at least a year. Maybe using a tech example was bad for this. But Founder A will be doing more of the leg work (say 40%/30%/30%) until the company opens in 2021/2022, at which point Founder B and C will have a salary and Founder A will not.
Here is where it gets more complicated. What if Founder C also wants to come in with $1MM of his own money to invest into the business? Founder B wants to come in with $100k and Founder A has nothing to contribute in terms of capital. Then how do we split equity?
Furthermore, does it make any sense to have the $1MM and $100k to come in as debt instead of equity, to avoid this problem?
Edit: I don't think it's relevant, but we will need to raise additional capital; thus, there will likely be other shareholders eventually. More concerned with the initial split between founders.
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- 3 years ago
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