One of the biggest challenges for start-ups is allocating equity among founders. How do you recognize the contributions of each team member? How does vesting, part-time employment, and intellectual property affect equity ownership? What happens when equity is diluted by raising capital, adopting an equity plan, or hiring additional new team members?
Often allocations are overly simplistic based on an equal distribution of shares, or overly complex based on different shares for each founder. What is the fair and practical way to allocate equity?
We have a practical and easy to use strategy for allocating equity.