Startup101: How Do I Divide Equity Among My Cofounders And Employees?

2 min read

So you have just spent six months building a prototype with an early team, punting the question on how to divide the company. Now you are looking to raise external capital essentially forcing you to formalize structure and ownership, generating heated debates. Sound familiar? Having a hard time deciding on how to divvy the startup is the rule rather than the exception. While every situation is unique and ultimately a negotiation, here is an actionable framework to help. With due caveat that small pieces of a large pie are often worth more than large pieces of a small pie. 1)…...

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Amit Garg I have been in Silicon Valley for 20 years -- at Samsung NEXT Ventures, running my own startup (as of May 2019 a series D that has raised $120M and valued at $450M), at Norwest Ventures, and doing product and analytics at Google. My academic training is BS in computer science and MS in biomedical informatics, both from Stanford, and MBA from Harvard. I speak natively 3 languages, live carbon-neutral, am a 70.3 Ironman finisher, and have built a hospital in rural India serving 100,000 people.