New Book: Founder’s Dilemmas

This book looks good: “Founder’s Dilemmas: Anticipating and Avoiding the pitfalls that can sink a startup”. I came across it in the “Startup Lessons Learned” Blog, which may be the best blog about leann startups.

This excerpt talks about a common scenario with startups, where the founders assume that they way they chose to split equity on day 0 will continue to work for them as time goes on:

“How should founders deal with such developments? In short, by assuming when they do the initial split that things will change, even if the specific changes cannot be foreseen, and therefore structuring a dynamic equity split rather than the static splits used at Zipcar, govWorks, and many other startups. As important as it is to get the initial equity split right—by matching it as closely as possible thefounders’ past contributions, opportunity costs, future contributions, and motivations—it is equally important to keep it right; that is, to be able to adjust the split as circumstances change.” (fromFounder’s Dilemmas: Equity Splits)

I think I will be getting the book.

p.s. not to be a scrooge, but shouldn’t the title be “Founders’ Dilemmas”?

0 thoughts on “New Book: Founder’s Dilemmas

  1. We need a simple model to help us properly slice the pie. It needs to be flexible and fair. By fair I mean it needs to give each founder what they deserve. And by flexible I mean it needs to adapt over time to re-allocate the equity so that the distribution stays fair until the fledgling company takes flight. check out mike moyer's book slicing pie it talks about 50/50 share and how to divide it through his grunt calculator. http://www.slicingpie.com

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