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Splitting Equity

1. Introduction2. Key Issues3. Structure4. Splitting Equity5. Managing Equity
Splitting Equity

Splitting Equity

Splitting equity among co-founders and employees can be a tricky and intimidating challenge. We’re going to break down every single factor to consider so you can avoid the most common pitfalls while navigating the great divide.

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Phases

Introduction

Intro

Key Issues

Phase 1

This quick primer will help us shape how to think about equity in a realistic sense while emphasizing importance of getting everything in writing.

Structure

Phase 2

We’re going to examine the 3 most popular methods for issuing stock, helping us determine which version best suits our needs.

Splitting Equity

Phase 3

To do this properly, we’ll need to know what our contribution to the company is worth now, what will it be worth in the future, and how to make adjustments down the line.

Managing Equity

Phase 4

We’ll see how managing equity is all about properly planning ahead to handle the changes that will inevitably occur across the company over time.

What you'll learn

Achieve consensus among team members on key equity decisions and issues before getting the lawyers involved.

Weigh the pros and cons of the most popular types of stock issued to employees, partners, advisors, and investors.

Learn how to set up a vesting schedule to allow members to earn stock over a period of time.

Understand how valuations are set and how it factors into splitting up equity.

Learn to value individual team member contributions now and in the future to determine how to split equity.

Manage equity long term and have a plan in place to account for changes to stock as members are added or removed.

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