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angelzzz2020-01-22 16:49:43
Startups
angelzzz, 2020-01-22 16:49:43

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.
Thanks

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5 answer(s)
I
Igor, 2020-01-22
@angelzzz

friends and relatives who have varying degrees of the necessary skills

the first and main way to fail a business, take friends and relatives
will you shoot or take away the apartment? :)
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the questions are not stupid, but there are no unambiguously correct answers to them, you are almost guaranteed to encounter a division and problems and thoughts "why did we decide on this at all and why Vasyan does not sign an agreement to sell the company - we will go bankrupt!"
pay a salary that is adequate and on time. to work for a carrot in a startup with an incomprehensible prospect, this is such a motivation ... it works only for students with no experience whom their mother feeds or for some reason a lot of extra money (and when they run out, problems begin, including for the company)

V
Vladislav Lyskov, 2020-01-22
@Vlatqa

10% mine

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Saboteur, 2020-01-22
@saboteur_kiev

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.

Y
Yuri Samoilov, 2020-01-22
@takezi

Get together with all the shareholders and discuss this issue.

V
Victor P., 2021-07-07
@Jeer

Hello, I wrote the answer in a separate post . Do I have a normal theory for assessing the contribution of participants to a startup?
A year has passed, by what formula was it calculated? ) And how did it happen?

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