Splitting the Pie • by Jeff Benrey
Upcoming SlideShare
Loading in...5
×
 

Splitting the Pie • by Jeff Benrey

on

  • 2,730 views

Getting Your Startup Started: Who Gets What

Getting Your Startup Started: Who Gets What

Statistics

Views

Total Views
2,730
Slideshare-icon Views on SlideShare
1,861
Embed Views
869

Actions

Likes
4
Downloads
10
Comments
0

1 Embed 869

http://www.cofounderclub.com 869

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Splitting the Pie • by Jeff Benrey Splitting the Pie • by Jeff Benrey Presentation Transcript

    • Splitting the Pie
      Jeff Benrey
      CEO/Founder
      Trovix
    • The Pie Can Shrink, the Pie Can Grow
      Time zero
      Founders 100%
    • Always Focus on Growing the Pie
      Focus on the right product for a big market
      Manage your EQUITY and CASH wisely
      Assemble the right founders and the best team, do not settle to fill an empty seat
      If you need funding, pick the right investors, the right time and the right amount
      Execute, Execute, Execute
    • Founders Checklist
      Keep number of founders to a minimum
      2 is ideal – typically one technical, one business
      At least one founder should be business focused.
      If one founder – then she should be strong both technically and business wise
      Each founder should add significant and on-going value to the company.
      Each founder should have a clear responsibility pre and post funding
    • Founders Equity
      Split 50/50 ?
      Easiest answer and if founders are truly equal in their contribution from beginning to end, then it’s the right answer
      Almost always not the right answer
    • Founders Equity
      Split based on value added and responsibility
      It’s the right answer – but involves hard conversations
      Come up with a list of key criteria
      Assign weights to each criteria
      Evaluate each founder based on these criteria/weights
      Determine % ownership for each founder
    • Founders – Sample Pie Splitter
      Founder 1 – 59%
      Founder 2 – 41%
    • Employee Options
      Everything being equal…
      Employees with more responsibility get more
      Star employees get more
      Early employees get more
      To manage cash, offer to trade more options for less salary
      Calculate a reasonable employee pool of options for each round of funding based on each level/job function
    • Employees – Sample Option Allocation
      For each round of funding, list all types of positions, number of hires by round, then add up to compute option pool needed
    • SUMMARY
      Keep it fair – Assume salary and options will be posted in the lunch room
      Focus on the building and growing your business at all times and don’t get hung up on equity, fund raising etc.
      EXECUTE…EXECUTE…EXECUTE