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Founder Shares: How much equity compensation for each founder; ideas on how to split equity

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This video describes the traditional "negotiation" approach as well as the "slicing pie" approach to determining how many startup founder shares (how much founder equity ownership) goes to each startup founder. Contingencies are also discussed, such as startup cofounder stock vesting and declining buyback rights.

How to split equity between cofounders fairly is a challenging process. Perhaps the most important consideration is that every one walks away from the table believing the process was fair.

posted by hal3l2yn5