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How to split shares in an IT startup?
We are making an IT product and decided to involve several people, because with the current resources of two people, we will need several times more time, but we would like to enter the market as early as possible, as well as share expertise on various issues among professionals.
We have colleagues, friends and relatives who have the necessary skills to varying degrees. To motivate them, we are currently ready to offer shares in a startup. Everything is done without investments (and most importantly, everyone is ready for this and agrees with it).
Hence the question arose: how to properly divide the shares in a startup?
1. Should we distribute all 100% or should we distribute 40-50% and allocate the rest for options for future employees and investors?
2. How to properly distribute interest? Should everyone be judged on their contribution, or should a standard percentage be given to each employee at this stage?
3. Do I need to put restrictions on leaving the project? KPIs? Duration of work, restrictions on the sale of your share?
I understand that many of these questions will seem stupid or inadequate, but I would like to hear the answers or links to understanding materials / resources. We are now going through an accelerator and we want to understand how to attract people and who is better to attract. We have the opportunity to recruit developers for the project, but we must understand how to properly motivate them.
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friends and relatives who have varying degrees of the necessary skills
Hence the question arose: how to properly divide the shares in a startup?
Let's assume that your startup completely flies in 1-2 years. Everyone put in their effort.
How will you share the costs and decide who should reimburse what for the effort expended?
Now you are sharing something. If you think that your project is mega-successful and everything will work out in it, make a business plan, calculate the expected profit and just borrow money to hire ordinary people for a salary.
If you think that the project can fail, then think again what you will do when it fails.
Get together and decide among yourselves. There are no general rules here.
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