Startup Co-founders Equity Split
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Co-founders Equity Split
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Directions:
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1In the light yellow Task/Resource column, there are two types: Cash and Effort and Time. Leave the Cash and Assets row as it is. For Effort and Time rows, if a task does not apply to your project, remove it completely. If there is a missing task, add it in one of the empty rows or replace an existing one.
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2In the light blue Significance column, modify the percentage of each task according to its importance to your project. While some projects rely heavily on IT systems, operation management are more important to other projects. Also, the amount of cash can play a minor or a significant role (can vary between 10% and 30%). Idea can be valuated based on its innovation, market competition and the readiness of its business plan. Also, in Idea, the brain storming may allow more than one cofounder to share the idea's percentage.
At the end, the bottom cell must contain 100%.
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3In the light magenta cells, enter the amount of cash contribution per each cofounder. Cash can be developed software, developed product, furniture, 18 months rent, 18 months service subscription and so on.
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4In the loght gray cells, enter the contribution of each cofounder for each task/resource. The last right cell of each row must contain 100%. Now the resulting, recommended equity split appears in the bottom dark purple cells.
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5Notes: 1) The preferred number of cofounders is two to three. 2)Three optional existing tasks are the BOD, advisors and important employees. If you will not have a board of directors, remove the row. If you will not have advisors or mentors, remove the row. If you will not give equity to employees, remove the row.
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6If you have any comments, questions or criticizm, please let me know. My Facebook profile is:
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https://www.facebook.com/mohamedhossamkhedr
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and my email is:
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khedr@ratteb.com
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