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 rightâby matching it as closely as possible thefoundersâ past contributions, opportunity costs, future contributions, and motivationsâit 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”?