Slicing Pie: A Guide to Dividing Up Early-Stage Startup Equity

by

IGNITE UCC Programme

Author:   Mike Moyer:

Not long ago, I was approached by one of my students at Northwestern, who was distraught over a situation in a fledging company that she had started in my entrepreneurship class. Her group had decided to split the equity in her company equally – 25 percent each. Now that the class was over, the other three partners weren’t pulling their weight. Two of them were pretty much out of the picture, and the third was only doing a little. However, all of them wanted to keep their share of the equity or sell it at an unreasonable price. The student was on the edge of tears. She didn’t know what to do. She found herself a minority shareholder in a company that she had dreamed about starting for several years. Now it seemed that the idea was going to die on the vine.

I wish this was…

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