I founded a company but have brought on an industrial designer and engineer on board as co-founders. They both bring unique skill sets and will put in the sweat equity, I am the CEO and will work in more the business intelligence side of things alongside PM duties. I have some hesitation giving them a large amount of ownership, as that would dilute my own. They deserve credit for their contribution, but to have my own shares dwindle into the 30-40's percentage of ownership gives me concern. Looking to vest month to month over a period of 2 or 3 years. Thoughts are welcome..

You are thinking about it wrong.

Don't think of your organization as a pie. Think of it as a house.

When you add an extension (say a new kitchen) to your house, the value of your new kitchen now accounts for a larger *percentage* of your house, more than it did before.

But something else also happens. Your house is now worth a lot more.

I highly recommend you watch the series on raising money for a startup by the Khan Academy -

Answered 7 years ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2021 LLC. All rights reserved.