Splitting the Pie<br />Jeff Benrey<br />CEO/Founder <br />Trovix<br />
The Pie Can Shrink, the Pie Can Grow<br />Time zero<br />Founders 100%<br />
Always Focus on Growing the Pie<br />Focus on the right product for a big market<br />Manage your EQUITY and CASH wisely<b...
Founders Checklist<br />Keep number of founders to a minimum<br />2 is ideal – typically one technical, one business<br />...
Founders Equity<br />Split 50/50 ?<br />Easiest answer and if founders are truly equal in their contribution from beginnin...
Founders  Equity	<br />Split based on value added and responsibility<br />It’s the right answer – but involves hard conver...
Founders – Sample Pie Splitter<br />Founder 1 – 59%<br />Founder 2 – 41%<br />
Employee Options<br />Everything being equal…<br />Employees with more responsibility get more<br />Star employees get mor...
Employees – Sample Option Allocation<br />For each round of funding, list all types of positions, number of hires by round...
SUMMARY<br />Keep it fair – Assume salary and options will be posted in the lunch room<br />Focus on the building and grow...
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Splitting the Pie • by Jeff Benrey

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Getting Your Startup Started: Who Gets What

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Splitting the Pie • by Jeff Benrey

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

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