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founder's equity
There will be 3 founders in my company. right now I need to allocate a percentage to just 1 person, a database architect . I need a formula. What think about below:
1. the database guy figures the amount he'd charge me if paid now
2. he figures the multiple of amount in #1 he needs to justify waiting 3-4 yrs to get paid, and the risk
3. we agree on the amount we can sell for, in 3-4 yrs
4. his equity % is a function of #3 and #2
Can it be this easy? He will be doing intermittent support, maintenance. I'll handle that separately. The equity % for the final hire, hire #3, is what's left over after the database guy and myself.
1. the database guy figures the amount he'd charge me if paid now
2. he figures the multiple of amount in #1 he needs to justify waiting 3-4 yrs to get paid, and the risk
3. we agree on the amount we can sell for, in 3-4 yrs
4. his equity % is a function of #3 and #2
Can it be this easy? He will be doing intermittent support, maintenance. I'll handle that separately. The equity % for the final hire, hire #3, is what's left over after the database guy and myself.
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