Questions

We are 4 Founders- 2 Business Guys (45% split equally) & 2 Tech Guys(35% split equally).The rest we have kept aside for fundraising. I have read splitting equally is not a good arrangement. Since I'm acting as CEO, should I be aware of potential problems that may arise out of this in near future? Should I keep my stake a little more than others?

In order to avoid a deadlock (tie) situation, it is preferred that there not be an equal allocation of shares. In this case, it isn't exactly equal seeing how the only situation of a deadlock would be if 1 'tech guy' and 1 'business guy' vote against the other two.
You can solve this by deciding, in the founders agreement, that the chairman of the board of directors (in the company or in the venture), or the CEO, has an extra vote in the event of a deadlock situation. Another option is to appoint an external professional (lawyer/businessman who is familiar with your startups field/market), and he decides if a deadlock arises (for this option you need someone neutral who you can all agree on).
I've successfully helped over 300 entrepreneurs and I'd be happy to help you. Good luck


Answered 5 years ago

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