Allocation of equity to founders
Not allocating equity correctly and fairly can lead to the breakup of what might have been a successful venture. This process is a minefield of personal tensions set inside an environment of uncertainty. In the early days of the organisation, we can have no real idea how it will turn out; and certainly it is difficult to predict who will contribute how much value in those first years. So the easiest thing to do is just split the equity evenly and avoid the tough conversations. Thats what Robin Chase did at Zipcar – and it turned out to be a disaster- see the video to find out how and why.
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