Re: anyone going to startup weekend?

["Lalish-Menagh, Trevor" <trev@trevmex.com>]

Well, the right answer is that it depends. There are not enough
details for a concrete answer. For example, if you have 1 partner and
you are both putting money and sweat on the line, a 50/50 might work.
If one of you is less invested either money or time-wise, you will
have to work that out.

I have been thinking about something similar lately. One of the
reasons I left my consulting job is that I was never offered equity. I
was the first employee with two partners 50/50, and I would have been
much more dedicated to the company if I had equity, even at one
percent.

So, here is my idea. Once you have your partners shares figured out,
take ~20% and reserve it for you first 100 employees as follows:
Employees 1-10 get 1% equity
Employees 11-20 get 0.5%
Employees 21-30 get 0.25%
Employees 31-40 get 0.125%
Employees 41-50 get 0.0625%
Employees 51-60 get 0.03125%
Employees 61-70 get 0.015625%
Employees 71-80 get 0.0078125%
Employees 81-90 get 0.00390625%
Employees 91-100 get 0.001953125%

If you sell for $10MM, 91-100 still get $19531.25, pretty good.

Now, if an employee willfully leaves or is fired/laid off before
payout (IPO or sale) their shares are distributed among the other
current pre-100 employees.

If an employee dies or leaves due to medical disability, their shares
stay in tact and/or are transferred to next of kin.

That way your early employees are rewarded for joining early and
staying on. Everybody wins.

Thoughts?

Yours,
Trevor

On Wed, Apr 18, 2012 at 9:35 PM, Steve Eichert <steve.eichert@gmail.com> wrote:
> This is only very loosely related to this thread but it prompted me to think
> about something that has been on my mind lately.
>
> What do the folks on this list think is the best way to determine
> theÂappropriateÂsplit of a company? ÂAssuming you have 1, 2 or 3 partners
> how would you go about determining the right ownership stake for each person
> involved?
>
> I have a complex scenario I'm dealing with at the moment that has me
> thinking about this and would welcome folks thoughts and/or pointers to
> external resources that you think might be worth spending some time with.
>
> Cheers,
> Steve



-- 
Trevor Lalish-Menagh
trev@trevmex.com
484.868.6150 (mobile)
trevmex (AIM)