We’re going to identify and isolate each of the key issues in splitting up equity in a startup company. Then one by one we will lay out which options are available, how most startups address this problem, and what key decisions the team will need to make to split the equity fairly and manage a plan long term.
Achieve consensus among team members on key equity decisions and issues before getting the lawyers involved.
Weigh the pros and cons of the most popular types of stock issued to employees, partners, advisors, and investors.
Learn how to set up a vesting schedule to allow members to earn stock over a period of time.
Understand how valuations are set and how it factors into splitting up equity.
Learn to value individual team member contributions now and in the future to determine how to split equity.
Manage equity long term and have a plan in place to account for changes to stock as members are added or removed.