How To Allocate Equity Between Founders And Employees?

Joel Spolsky,

Fairness and fairness are more valuable than having many shares.

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 shares of the company, and the shareholders in each layer should share the shares on average.

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

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Joel's article also clarified that the founding funds should be withdrawn when the risk is highest in the early years of difficulty, and when there is no cash flow.

We can't just put it forward.

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.