biblequest
New member
Currently this bootstrapped business started with 2 co-founders with the 50 50 split in ownership. After a year, they have made some revenue and are expecting to triple this year. Hence they plan to expand with 2 additional co-founders to help accelerate the growth.
They are expecting these late co-founders to work the same amount of hours as them and to provide equal value to the company with the special skills that they have.
My question is if 15% is considered a fair percentage of ownership, as this is what I was offered by them. Also the other partner they will include will probably be in the 10-15% ownership as well. There is no investing of funds from anybody as well.
Pretty much to summarized it will probably look like this:
Partner A - 35%
Partner B - 35%
Partner C (me) - 15%
Partner D (another late joiner) - 15%
Is this a fair distribution for being a year late?
Edit: Wow didn't expect so much traction, thank u all for your answers. Im mostly asking this as it's the first for me. Anyways here are some additional information if you find helpful:
1) The equity will be vested in 4 years
2) There will be a below market rate salary as well that is nearly equal to all founders (minimum wage basically)
3) Their reason for wanting additional co-founders is to have people who truly care for the business and run it with them in the long term
4) The value I'll be bringing is handling their marketing sector which is key for their growth right now
They are expecting these late co-founders to work the same amount of hours as them and to provide equal value to the company with the special skills that they have.
My question is if 15% is considered a fair percentage of ownership, as this is what I was offered by them. Also the other partner they will include will probably be in the 10-15% ownership as well. There is no investing of funds from anybody as well.
Pretty much to summarized it will probably look like this:
Partner A - 35%
Partner B - 35%
Partner C (me) - 15%
Partner D (another late joiner) - 15%
Is this a fair distribution for being a year late?
Edit: Wow didn't expect so much traction, thank u all for your answers. Im mostly asking this as it's the first for me. Anyways here are some additional information if you find helpful:
1) The equity will be vested in 4 years
2) There will be a below market rate salary as well that is nearly equal to all founders (minimum wage basically)
3) Their reason for wanting additional co-founders is to have people who truly care for the business and run it with them in the long term
4) The value I'll be bringing is handling their marketing sector which is key for their growth right now