Are you a founder? Do you know how much of your startup you own? What are the ways founders divide up equity? How much ownership do investors usually take? In this seminar we will explore these topics, including tips on bootstrapping, fundraising, and the like, all from the point of view of an evidence-based entrepreneur.
Lean Start-up Business Tactics Seminar - Who Owns Your Company?
1. The path of the righteous man is beset on all
sides by the inequities of the selfish and the
tyranny of evil men.
Blessed is he, who in the name of charity and good will,
shepherds the weak through the valley of darkness, for he
is truly his brother's keeper and the finder of lost children.
And I will strike down upon thee with great vengeance and
furious anger those who would attempt to poison and
destroy my brothers.
And you will know my name is the Lord when I lay my
vengeance upon thee.
Jules Winnfield, Pulp Fiction
2. Who owns your Startup?
Keith McGreggor, Ph.D.
Director of VentureLab
the inequity of equity
9. eq•ui•ty
1. the quality of being fair and impartial.
2. the value of the shares issues by a company.
3. the value after the deduction of any liabilities
the equity of treatment
she owns 62% of the startup’s equity
equity = assets - liabilities
10. eq•ui•ty
1. the quality of being fair and impartial.
2.the value of the shares issues by a company.
3. the value after the deduction of any liabilities
the equity of treatment
she owns 62% of the startup’s equity
equity = assets - liabilities
26. FAQ
what if I need a salary? IOU
more shares for my idea? nope
what if I’m not full-time? not founder
what if I bring equipment,
patents, etc.? IOU
Never trade away your equity
45. Founders have to reverse vest
Typically for 3 years!
oh, by the way…
46. Each round of investors is
participating preferred.
They get paid back AND stock.
!
Round A is 2x participating (more risk).
Round B is 1x participating.
oh, by the way…
60. Each investor costs founders
money & control.
moral
“The path of the righteous man
is beset on all sides by the
inequities of the selfish and the
tyranny of evil men.”