Best Practices Finding Co-Founder & Dividing Up Shares

Live Video Event Lunch and Learn

Wed Apr 10

Joe ChinCEO of SourcePad, Founder of Best PracticesSerial entrepreneur, worked with 60+ startups

Finding a Co-Founder & Dividing up Shares

12:05 PMlivestream.com/bestpracticesbusiness

Finding● Approach / Mindset● Preparation● Methods

Dividing● 2 types of treatment● Reference / Benchmarks● Framework example

Meet Joe…● 4 time founder / CEO● Raised $20 Million, 2 Exits

● Opinionated Guy…

● Entrepreneur teacher (60+ companies)

Why co-founder?

Share the load

Lacking the other half (business/tech)

Have no funds "need tech"

Approach / mindset

#1 Asking someone to "invest"

● be prepared

● be the best in class

Preparation

Have:

● Elevator pitch

● Exec sum, powerpoint

● How does this translate to $$

● Who are you?

Preparation

Have:

● Elevator pitch

● Exec sum, powerpoint

● How does this translate to $$

● Who are you?

covered in financing LVE

The upsideHow does this translate to $$

Who are you?The partner

Positioning applies to people

A well-written resume/intro vs. a poor one

vs.

Where?

You know

Where?

You know

Craigslist

Listservs

EventsNetworking

Mass emailing

Positioning more importantSample #1Seeking Co-Founder/CTO

We are looking to partner with an entrepreneurial-minded Software designer/programmer who has an engineering or Computer Science degree from a reputable University.

You will be the Co-Founder/CTO who will have the responsibility of come-up of a realistic "storyboards", screen demos and basic prototypes, which will help the company express the ideas and generate interest and funding during the early stage.

You will also be responsible to hire or outsource part of any development of the application in order to develop a framework that will allow us to target our core market quickly, and adding additional features to our platforms as the business grows.

You're Qualifications • Computer Science, Software Engineering or Software Development degree from a reputable University• You had prior experienced developing an appointment style of software system • You love problem solving, have an entrepreneurial nature and enjoy pushing technical boundaries• You have sound understanding of database coding, and writing SQL• You are talented, creative C# .Net Software Developer etc.


We are looking to partner with an entrepreneurial-minded Software designer/programmer who has an engineering or Computer Science degree from a reputable University.

You will be the Co-Founder/CTO who will have the responsibility of come-up of a realistic "storyboards", screen demos and basic prototypes, which will help the company express the ideas and generate interest and funding during the early stage.

You will also be responsible to hire or outsource part of any development of the application in order to develop a framework that will allow us to target our core market quickly, and adding additional features to our platforms as the business grows.

You're Qualifications • Computer Science, Software Engineering or Software Development degree from a reputable University• You had prior experienced developing an appointment style of software system • You love problem solving, have an entrepreneurial nature and enjoy pushing technical boundaries• You have sound understanding of database coding, and writing SQL• You are talented, creative C# .Net Software Developer etc.

BAD


I'm a Co-Founder of _______, an online platform that makes commercial real estate leasing easier. ________ is a one-stop-shop for leasing that connects tenants with the full complement of providers they need for finding and setting up a new office, restaurant, or store. We are looking to bring on a CTO / web developer (who isn't?!?!).

Our platform is being built in Ruby and we are looking to bring someone on full time to take ownership of it. We have raised money and were recently selected as one of only 10 student led startups to pitch at DEMO (http://demo.com/).

This market is ripe for disruption--think Zillow and Trulia for commercial--come be a part of it!

If you or anyone you know might be interested, please send them my way: _________________

http://demo.com/


I'm a Co-Founder of _______, an online platform that makes commercial real estate leasing easier. ________ is a one-stop-shop for leasing that connects tenants with the full complement of providers they need for finding and setting up a new office, restaurant, or store. We are looking to bring on a CTO / web developer (who isn't?!?!).

Our platform is being built in Ruby and we are looking to bring someone on full time to take ownership of it. We have raised money and were recently selected as one of only 10 student led startups to pitch at DEMO (http://demo.com/).

This market is ripe for disruption--think Zillow and Trulia for commercial--come be a part of it!

If you or anyone you know might be interested, please send them my way: _________________

GOOD

http://demo.com/

Approach / mindset

#2 Don't compromise !

● Your most important hire

● Most scrutiny / not less

GuidelinesMore scrutiny / not less

● Give / invite

Sneaky tests

● Weekend tests, email response times, task oriented meetings

Get to know each other

● Have to mesh --> forming the "rock"

Sponsor

Web Mobile RoR iPhone Android

We build ideas

[email protected]

Sponsor

Client - True &Co

Sponsor

Client- Twigmore

Dividing Equity

Partnership vs. not

Simple

Limit to unbalance

Feels right

Industry norms

Terribly unbalanced

Feels like employee

Reference/BenchmarkComprehensive survey on comp

http://bit.ly/HvaX0C

Well-done --> authority

How to use benchmarkWhere are you (or the other person)

As much art as scienceTime commitments

Progress already madeRole

Experience

There from beginning

Sample Arrangements

Partner1 to 1, 1 to 50%, 1 to 25%

NonSurvival comp w/ upside kicker

Employee-like share (more because not "market")

Foregoing : Equal or unequal

Simple

Sample Arrangements

Template: http://bit.ly/I4eWAp

Comprehensive / Analytical

50% Principal | 50% Work Value

Happy Partnering !

Wed May 9 @ NYU 44 West Fourth Street, Room #1-70

Fabrice Grinda: Founder/CEO OLX (founded and sold Zingy for $80 mil )Birchbox (tentative)Register: tbd

Web Mobile RoR iPhone Android

we build ideas

Site: sourcepad.com Email: [email protected]

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Best Practices Finding Co-Founder & Dividing Up Shares

Technology

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