TLDRTalent - For many startups, equity forms a common part of the compensation package they offer employees, particularly early hires. It can be an effective way of attracting and hiring talent when a startup is at an early stage and is financially restrained from being able to offer high salaries.
Our Founder Life series provides guides, how-to's, cheat sheets, and educational content on everything to do with the life of a founder.
TLDRDeciding how, and when, to split equity with your co-founder(s) is a fundamental part of the early stages of setting up a company. Many factors should be taken into consideration when deciding on the equity split amongst the founding team.Structuring your founding team and laying the foundations of
A Founder’s Service Agreement (FSA) is a legal contract all founders should sign in the early stages of a company’s formation. It is important Founder’s are in agreement about how they are going to create a company and what the company’s future looks like. Ideally, a
TLDRWhen it comes to fundraising, there are a whole host of sources of funding beyond Angel Investors and VCs. You should consider raising capital from all of these before turning to Angels and/or institutional investment. The startup boom has been accompanied by a venture capital boom and the options
TLDRComplementary not duplicatory - A co-founder should complement your skills and strengths rather than duplicate them. A CTO-CEO relationship is likely to prove more fruitful than a CEO-CEO or CTO-CTO relationship.Rapport - Entering into a relationship with someone who you trust and get on well with will make any
TLDRCompatibility - Know what you are looking for in a co-founder. Ensure they complement your skills rather than duplicate them.Network - Utilising your existing network, and expanding it, is a great place to start when trying to find a co-founder or aiming to get recommendations and introductions.Accelerators/Incubators
TLDRAn options pool is the portion of a company's shares set aside for future employees as part of an equity incentive plan.They are often used to attract talent to a company as part of an employee's compensation package and are also used to create alignment amongst employees and motivate
TLDRBandwidth - Having someone to split work with and allocate tasks according to individual strengths, means a lot more work can be achieved in the same amount of time and at a higher quality.Support - Having a co-founder allows you to balance the trials and tribulations of building a
The importance of Founders conducting due diligence on investors (with contributions from founders themselves).
Why Founders should be conducting due diligence on investors, regardless of whether they will actually act on their findings.