How to build a stable founder team?

Source: Internet
Author: User

Among the startups, only the first founders contributed, and the later founders quit their work and joined the company in the form of "low salary + option" (not having any company equity for the moment ), as the company's management, take an important position in the company.

Some people say that it is best to make the late founders make some money to improve the stability of the management layer. However, if the late founders have limited funds and sell the premium share price to the late founders, the late founders will be psychologically unbalanced and have too few shares. For example, if they are sold to the late founders at the original stock price, the value of the company is obviously underestimated, and they are worried that the late founders will gain part of the shares, the incentive of allocated options is greatly reduced.

The founders of Houjin took options. For vest in the past four years, there were mostly options between 2 and 4%.

I would like to ask your predecessors to give us some advice on how to design equity/option institutions to better enhance the stability of the later founders?

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I personally have some experiences
1. First of all, it is important to recognize the "team"> the "product or project", which is more likely to succeed.
2. there is no need for low wages + options. This rationality cannot be determined. No one can accurately determine the duration of low wages and the number of options. All rights related to shareholders are determined by the size of investment quotas, then, the team members will first evaluate the company, and then determine the number of shares to be occupied, such as 3%. Then, they need to invest according to the (estimated * 3%) quota, so they do not need to invest directly in money, instead, it is deducted from the salary (the normal salary determined according to the market conditions) until the full salary is paid when the quota is met. If there is a setback in cash, the salary can be owed, to make money in the future, first make up the salary of all the founders, and then pay dividends based on the shares.
3. the entrepreneurial team started to start a business together because they agreed with each other. However, with the development of the business, everyone must have different ideas. Therefore, it is very important to establish an exit mechanism at the beginning of the establishment. The Founder can gradually withdraw from the management layer, my experience is that the company has developed to a certain extent, and the entrepreneurial team has the worst execution ability.

How to build a stable founder team?

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