Pretty good advice apart from quitting your job part. But agree with everything else.
Cheers Dean -----Original Message----- From: Kevin Baum [kevin.b...@agriwebb.com] Received: Wednesday, 11 Apr 2018, 8:04AM To: silicon-beach-australia@googlegroups.com [silicon-beach-australia@googlegroups.com] Subject: Re: [SiliconBeach] Startup equity split Hi Luke, Co-Founder of a 4 year old SaaS company here. Having had multiple experiences with Equity that led to conflict I would recommend the following: * Always split equity evenly between founders (unless one is bringing defensible IP or $$ to the table. Ideas do not count. It's not about ideas, but execution). Roles change and become more and less important over time. Splitting it based on perceived value in the future is impossible to do. * Everyone Vests - Typically 4 yr with a 1 yr cliff. I personally have dealt with and know several others who have dealt with founders leaving early and having dead-equity nightmares that decimated funding rounds. * Nobody gets equity granted until they quit their job - people's circumstances change and you should not grant equity based on a promise. Part time is 1/10th as effective as full, and sweat equity should not be realised until someone goes full time. Happy to chat more about some of my horror stories if you like. Sincerely, Kevin Baum [https://htmlsigs.s3.amazonaws.com/logos/files/000/587/325/landscape/email-sig.png]<http://agriwebb.com/> Kevin Baum / CEO/Co-founder Ph: 0449 606 144 AgriWebb http://agriwebb.com<http://agriwebb.com/> Level 6, 227 Elizabeth Street, Sydney 2000 On Fri, Apr 6, 2018 at 4:56 PM, Luke Haddrick <luke.haddr...@gmail.com<mailto:luke.haddr...@gmail.com>> wrote: Hey Guys I am in the early stages of setting up a SaaS company with 2 other partners. The dilemma I face is all too common, what should the split be? We haven't started selling the product yet, however we need to address this upfront now as you know. Summary of the role of the 3 founders and the level of involvement: Founder 1: CEO - owner of the idea, and will be responsible for day-to-day, pitching, bus-dev etc Founder 2: Tech Director (CTO) who will manage the development requirements (time is scarce as working FT elsewhere) Founder 3: Director - who will bring the network of contacts and has founded another creative agency (time is scarce as working on multiple other projects) Question 1: Should costs for development and design of the website be split even through the other two partners are taking a chunk of equity each? As opposed to startup expenses being invested by each party i.e. development costs / design costs to be earn their equity stake. Question 2. With respect to sweat involvement or grunt a flexible structure is needed where the amount vested can be adjusted over time. How do I approach this? Thanks Luke -- -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to silicon-beach-australia@googlegroups.com<mailto:silicon-beach-australia@googlegroups.com> To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com<mailto:silicon-beach-australia%2bunsubscr...@googlegroups.com> For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en --- You received this message because you are subscribed to the Google Groups "Silicon Beach Australia" group. 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