I was chatting with an early startup team yesterday and they had a reasonably common question, which I will answer here for benefit of others in similar situation: What should one do about equity split in a team of X where one is clearly the junior partner?
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I am not thrilled about this, but in consensus SFBA culture, there is a pretty titanic gulf between last co-founder and first employee regarding questions like “Should an investor or prospective investor ever desire to talk to you 1:1?”
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(There is also a gap on that particular question of “CEO vs. any other cofounder” but if an investor talks to co-founding CTO w/o telling CEO that is cool but if they talk to employee CTO they *have transgressed.*)
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A thing about generous employee grants: professional money had definite views regarding the total employee allocation (options pool) and overspending on employee #1 will often result in them advocating for revisiting that decision later.
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End of conversation
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The corollary is that you should be very careful who you designate as a cofounder and N should probably not be more than 3 or 4
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