How To Allocate Equity Between Founders And Employees?

Joel Spolsky, risk Investment The co founder and CEO of Stack Exchange, a company, published an article that gave a good answer to "founders and employees." stock right How to allocate "problems".

Fairness and fairness are more important than having many shares. value

Before dilution of investors' shares, the founders should have 50% of all the shares of the company. Every 5 levels should include 10% of the company's shares, and the shareholders in each tier should share the shares equally.

It is not reasonable to give the right of voting to employees only.

Only ideas are meaningless.

No one will not work hard if he is regarded as the founder.

In Joel's article, what I like most is his keen mind, like a javelin thrown out of many traditional founders' equity distribution concept. My favorite view is that he believes that people should have the idea of not asking for dividends in the distribution of shares.

Joel's article also clarified that the founding funds should be withdrawn when the risk is highest in the early years of difficulty, and when there is no cash flow. You can't waste money just to put forward a business idea, get a patent, or maintain a no wage dilemma.

And I emphasize again that fairness should be paid attention to. Compared with the entrepreneurial teams with more shares of founders, the entrepreneurial teams that are able to fairly distribute the original equity can better aggregate together. The same applies to Vc firm. The most stable venture capital relationship exists between partners who can fairly or fairly share their income. After a day's work, the importance of being respected can be comparable to that of wages. And when people feel unvalued, they will choose to leave the team.