Dividing ownership in a startup

“Experience is a good school, but the fees are high?”
– Heinrich Heine



It is the lesson of the true cost of recruiting the wrong founding team in a startup. You fill a role out of desperation, or even worse, recruit a friend or family who will do for now but never was quite the right fit. There are moments of convenience and other times, rationalization, for hiring people you trust, forgetting to foresee roles and consequences. Hiring at the top of a pyramid, the bottom grows over the years even when founders leave. And then the recruit in turn takes the organization down the garden path, hiring more of the wrong people, perpetuating one error to final destruction. The good old adage for entrepreneur CEOs – hire the very best for your life depends on it – we have heard it all, many times. And again, to do it in reality, even the brave will falter.



How does an entrepreneur divide equity among co founders?
Should I divide the equity in my startup equally?
How do you do it?

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