Startup Investment & Modelling with Excel
You can use this template as a robust calculator to help you and your cofounders to find a fair equity split. This template will help you to understand your startup’s milestones, what tasks must be done to reach out your goals and split your equity fairly.
You grab your two best friends, get all excited, and then start a company together.
In your haste to get started, you and your two co-founders decided to divide the equity evenly in thirds--it seemed the obvious and fair choice at the time.
Two months later, just as you're starting to get some traction, one of your friends changes his mind and drops out entirely. But for the work that he did initially, he believes he should still get to keep his 1/3 share of the company.
The two of you left are now essentially doing all the work, but for only 2/3 of the company. Still worth pursuing? Maybe. But you definitely won't be happy.
'Deadweight' cofounders with significant equity stakes can make it difficult to attract new team members or investors, among other issues.
Don't make this easily avoidable mistake. My course and my calculator will allow you and your cofounders to have a collaborative and transparent conversation about how much of the company each person should get.
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