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Co-Founders Equity Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Running a startup it requires a complete team. Someone is building it and someone is selling it.\xa0 In the early stages of a startup, the founder is doing one of these and the cofounder is doing the other. Founders should look for cofounders whose skill complements their own. Since there\u2019s no revenue, equity is used to compensate the founder and cofounder for their early work. Founders must split the equity with the cofounder.\xa0 Here are some key points to consider in determining the equity split: Keep the big picture in mind when determining the cofounder's value. Startups take many years to build and then sell so decisions should be made on long-term value and not just short-term job duties. The equity split must be compelling enough for both founder and co-founder to motivate a strong contribution.\xa0 Investors will look at the equity split to see if the key players are adequately motivated. Focus on skills and execution rather than ideas and hours worked. Make sure you vest the cofounder\u2019s shares over a four-year period. I see many startups with only half the equity still engaged with the company as a cofounder left early and took their entire equity allocation with them. Plan for the long term and split equity so everyone is motivated to see it through. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _________________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .