Comments on: Ask Venture Hacks

By: Anonymous

Anonymous — Sat, 01 Dec 2007 07:30:24 +0000

Hello,

I think Venturehacks gives an excellent insight into startup capital. Your site has been a great resource!

Question: in a startup of multiple founders, how do you balance the founding equity with other sources of income (ie some founders are married with working wives, some are single, some have other income from other part-time ventures)? Does the person who has no other income, get more equity? are pay scales differentiated?

We want to align everyone with the same commitment to the venture, but external income may adjust the economic incentives portion of that.

Thanks in advance for your perspective,

By: Nivi

Nivi — Sun, 28 Oct 2007 19:01:27 +0000

Hi Arun, please email questions to nandn@venturehacks.com. Thanks!

By: Arun

Arun — Sun, 28 Oct 2007 04:05:44 +0000

The scenario is as follows:
Region: India (Delhi)
Vertical: Software and IT Services
Total investment required: 2.75 Million USD
BEP: 24 months
Total return in 5 years: 5 fold of initial investment made
Current number of partners: 4

What is the percentage of shares which the following responsibility holders should have, if each of them is responsible for the following exclusive and distinct responsibilities:
1. Financial investing as Private Equity holder
2. Marketing and Sales
3. Daily Operations and Management (includes Organizational Strategy, etc.)
4. Technology & Innovations