Exact(7)
Few topics cause more rifts in startup teams than equity splits.
According to sources, the merger fell apart after the two companies could not come to terms over equity splits.
Editor's note: Mike Moyer is the author of Slicing Pie, a book about implementing dynamic equity splits.
Although I regularly warn my clients about the perils of equity splits, now and then some founders prove me wrong (or maybe just defy the odds).
Traditional fixed models run the risk of unfair equity splits that can cause relationship problems between founders that often lead to the startup's demise.
When startup founders sit down with me to hash out equity splits and trust and commitment issues, their tempers sometimes flare.
Similar(53)
Discounting the cash, therefore, makes the proposed equity split seem reasonable enough.
"This will make an equity split-dollar arrangement less attractive as a matter of executive compensation".
(100% S&P 500) (100% International) (60/40 Equity Split) That may not sound like much, but it is indeed a free lunch.
P. Schoenfeld Asset Management argues that deducting this amount before calculating the equity split is unfair since all cellular companies need to buy spectrum.
Here's a pie chart (via paidContent:uk) of SpinVox's equity split, as of July 8.
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