Mohamed HossamAuthor, Consultant and Serial Entrepreneur

Author of the Arabic "Entrepreneur Inside Out", serial entrepreneur who had three exits, Managing Partner at a venture capital, helped hundreds of startups and tens of companies and an MBA holder.

Recent Answers

I would see the equal shares among the co-founders as a warning sign. Very rarely we see successful companies with such practice because eventually one co-founder, most commonly the founder and the CEO, begins to feel like he is not building HIS company any more and to realize that the other co-founders can be replaced for less shares or even for salaries.

No matter how many co-founders there are, I advocate the CEO to have at least:

a) 25% if he is not responsible for any specialization or function (marketing, tech, operation, etc.). The breakdown is 10% for the idea and 15% for his work as CEO.

b) 40% if he is responsible for a function beside managing the company. In this case, it is 10% idea, 15% for acting as the CEO and 15% for his other function.

I introduced an innovative way for equity split that spread in Egypt for the last year and people got comfortable using it.

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