Blog Archives

Is Dead Equity Crippling Your Company?

By: Noam Wasserman for Dead equity — equity held by employees and founders no longer working at the company — is a large and growing problem. Facebook’s IPO minted many millionaires and even billionaires.  One who attracted much attention

Posted in equity issues, equity split, vesting

Fear vs. Greed at Facebook

By: Noam Wasserman for Mark Zuckerberg and his executive team have been extremely successful at retaining equity in their company. But how well do most other founders do? Even as Facebook prepares to go public, Mark Zuckerberg, the founder

Posted in equity issues, equity split, rich vs. king, vesting Tagged with:

The Quick Handshake: A Valuation Penalty?

When do co-founders split the equity equally, and does an equal split affect their venture’s later valuation? We are currently conducting our annual CompStudy survey. (I’ll soon be posting details about how to participate.) Over the last two years, I

Posted in co-founders, equity split, financing

“Founders’ Dilemmas” Course: “Building the (Founding) Team” Case Studies

In prior posts about my “Founders’ Dilemmas” MBA course, I provided an overview of the course and details about its first three case studies (which include the Introductory case and the cases in the “When to Found” module). This post

Posted in co-founders, equity split, MBA course content, roles

New: “A Note on the Legal and Tax Implications of Founders’ Equity Splits”

In January, I debuted a brand-new MBA course based on my research on founders. The theme of the course should be familiar to readers of this blog: the tough, early choices founders face that have important, long-term implications for them

Posted in equity split

The Idea Premium: How Much (Equity) is Your Idea Worth?

How much more equity do you receive if you are the founder who came up with the original idea for your venture? Last month I posted preliminary analyses (here and here) of how the initial titles/positions adopted by co-founders are

Posted in co-founders, equity split, idea people

Equity-Split Results, Part 2: Implications for Team Stability

Does the founding team’s equity split affect the team’s stability as the venture grows? As I described in my original “Splitting the Pie” post almost a year ago, my initial interest in equity splits was sparked by the contrast between

Posted in equity issues, equity split

Equity-Split Results, Part 1: When Do Teams Split Equally?

What makes a founding team more likely to split equity equally? In this year’s Entrepreneurship and Compensation Survey, I added questions about equity splits within the founding team. These questions were sparked by my cases and field research about equity

Posted in equity issues, equity split

Splitting the Pie: Jumping the Gun?

Is it good to split the pie “as early as possible”? I just ran into an equity-splits document at the site of MIT’s Deshpande Center. It is a summary from a workshop entitled “How to Split Equity – Faculty Entrepreneurship

Posted in equity split

Splitting the Pie: Founding Team Equity Splits

Let’s kick off 2006 with an issue about which I get a lot of questions (and which StatCounter reports is one of the highest-ranking Google search terms that lead people to this blog). That issue is equity splits within the

Posted in equity split