Ask IH: Equity split what are your thoughts and experiences
Hi IndieHackers 👋,
My name is Evgeny Bazarov and currenty I'm working as Machine & Deep Learning engineer in France (Paris). Me and my friend Artur we are building side project that will help people all other the world invest or buy real estate construction programs in France.
One of most important decision that we should make at the beginning is about equity split. After reading really good book that called "The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup" we had learned about dynamically equity split and some practices of negotiation process, which should help to avoid conflicts in the team later. But we think that has a feedback from people that actually do execution of ideas will be incredibly helpful.
What do you think, how is better to handle problem of "Slicing Pie" 🤔? This step in building company is very important and sharing our ideas and experience will benefit us all.
P.S. Artur making posts about our road in bootstrapping company in France take a look at his instagram if you interested.
Hi Evgeny,
Are you talking about sharing equity with your business partner or talking about sharing equity with future employees?
Sorry for not to be clear. I'm talking about sharing equity with my co-founder. At early beginning we was thinking to do 50/50 what was naive from our side and could bring a lot of problem later. So we are searching optimal strategies for better handling equity split.
This comment was deleted 7 years ago
Thank you for your reply, very useful.
I sad 50/50 was naive from our side at the beginning, because we didn't even took necessary amount of time to discuss the split. It was something logical, both of us has almost similar value that he can bring to the company, so it looked that 50/50 was something fair. But later when we had questions like what if one of us will go to work full time on the project and other will work only part time or what if there will be urgent situation when one of us will not work during long period of time, it didn't look fair as it was.
Can't agree more, that's why we are looking for advice and best practices from people that may had faced already similar problem or know how to solve it.