Founder, Co Founder, VC discussed on This Week in Startups
Then how much equities left said then that becomes a math problem. Solo founder gets diluted twenty percent twenty percent twenty percent twenty percent off somewhere along the line they own twenty percent of the company when it goes public right or something in that range you get. Five co-founders okay. Vc's come in and take thirty percent. Five co fat. They give ten percent of the employees five co-founders up twelve percent each than they get diluted twenty percent own their down to ten percent down to seven percent you know when you start getting founders into the low single digits you know what they start thinking if i start over and all the founder i can have eighty five percent of this leap in company and i seen it happen. And it's a real bummer. So you gotta top off those founders. I have a little secret for that. Because i'm usually early in the early advocate. i'll just say delays aged founders the latest stage investors. Listen this founder is at. I don't know in one case. It was like i don't know eleven percent. This kids killing himself. He's got eleven percent of the company. The company had to raise money was a pretty hard situation. He doesn't have a co founder. But i want to give this founder five points over five years people were like. Oh my lord. I'm like well. He's almost fully vested. You want to run the company and we'll put the five points and we'll tie it to something like performance or whatever and i got everybody to do it. That was another situation happened to be a female founder. She was down below twenty percent. Manageable wasn't as acute as the ten percent situation that she was fifteen. She wants to do the top off. She says i want ten percent went up twenty five percent. She had just taken a million dollars. I'm i'm blurring some of the details here so it's not identifiable and i said okay. I support you but you know it's there's two other two other board members you have to win over with this thing and so she said well you talk to the board member. I talked to the board member. He's our he's like no no Hit your numbers for a year and then make a request. You still have eighteen months left on your best when this investment when you're through this vesting schedule and you've hit this millions of dollars in revenue. Then i think you can make that request on our side okay for me. I'm like i just wanna lock the founder. And i don't want them looking over their shoulder so great question a little more information than yes for But no jason at cal academy dot com doesn't care if you're solo or two or three and my point about the role story is low. Behold he started another company called superhuman. There are other partners there. But he's running the show basically and i think he's kind of a solo founder Although there might be some folks who consider themselves like on the founding team so there's a lot of like Nuance to this as well. The way you know who the founder is. Is there somebody who owns thirty. Or forty percent of the company that's like a solo founder. If this two or three of the own you know typically ten or twenty percent each which could.