Looking for advice on Startup equity

2 points by mvrod 18 years ago | 3 comments

Hi, I am in the very very early stages of my web startup, we are 3 partners but we have not yet talked about equity and I was wondering if you guys had any tips on how to do it? -- Thanks!!<p>Idea - I came up with the idea Funding - I am putting most of the money (90%)<p>Thanks again!

sharpshoot 18 years ago |

If you are putting in the money, put it into the company as a loan. I'm sure this isn't the only capital this company will need so it makes it silly to split equity based on short term thinking.

I think also everyone will have to think as this is their idea too. If you had the initial idea, the inital idea will change.

Don't get trapped by short term thinking. Split the company three ways, get vesting and a 1-year cliff and then get on with it. Only then will your equity actually be worth something worth worrying about.

Good luck.

mvrod 18 years ago | |

Thanks - I know that we would need more money, but would you do it the same way even if I am putting 90% of the money which would allow us to run the company for an entire year... Regards

mvrod 18 years ago |

Thanks!