Equity War What are the pitfalls of the equity distribution and exit of the entrepreneurial team

It is wrong to say that the equity of the startup team should be divided equally.

Reasonable equity distribution is an important basis to avoid rapid failure of enterprises and escort the sustainable success of enterprises, and summarizes the "two cores, three principles, and four traps" that start-ups need to pay attention to in equity distribution.

Two cores:

1. Talent core. Everything must return to talents and serve talents.

2. Capital core. From the beginning of a business, an enterprise needs to go through a complete life process, which starts from having an idea or technology, gathers a team, forms a product, improves the product, verifies the business model, and quickly replicates itself.

and then to the expansion of cross-regional or cross-industrial chains, until the final maturity and even listing, each stage of which requires continuous investment of funds as the foundation and driving force for the development of the enterprise. "Financing" has also become a strategic topic that all start-ups have to face at the beginning of their development.

Three principles:

1. Quantify contributions and clarify the responsibilities, rights and interests of partners. Although there is no certain rule for the distribution of equity among the partners of the company, the principle is to "quantify the contribution of the partners on the basis of the company's value-oriented", with the purpose of clarifying the long-term responsibilities, rights and interests of each partner.

2. Leave room for investors to enter, and at the same time ensure that the company's control is not left out in the financing process. At the time of each round of investor entry, the startup team needs to think ahead, plan holistically, and constantly adjust to make time and space for the future.

At the same time, it should also be noted that the equity dilution brought about by the entry of multiple rounds of investors will lead to the risk of losing control of the company, especially when there are different voices within the entrepreneurial team, investors often become the "last straw that breaks the camel's back".

3. Leave room for the company's equity incentives. Entrepreneurship is like a relay race, which requires fresh blood to generate waves of power, and needs regional and industry talents to continuously create new value for the company, so it can be said that entrepreneurship is to run a relay marathon at the speed of 100-meter sprint.

Therefore, as a start-up enterprise, it is necessary to always set aside a part of the equity pool to attract regional talents and industry talents to join.

The principle of equal distribution, distribution Several friends start a business together, but it must be difficult for one person to complete, and they trust each other, so Zheng Dan rolled up to start a business. Then it is best for everyone to distribute the equity evenly at the beginning of the business, because at this time, everyone usually has difficulties and needs you, and when starting a business, there are fewer interest disputes. Therefore, it is best to distribute the equity evenly when starting a business, and don't worry too much, so that you can work together to create the company's glory in the future.

The company is the largest, the equity is meaningful, and when you have 100% equity, the company is in vain.

Article 33 of the Company Law of the People's Republic of China Shareholders have the right to inspect and copy the articles of association, minutes of shareholders' meetings, resolutions of board of directors, resolutions of boards of supervisors and financial accounting reports. Shareholders may request to inspect the company's accounting books. If a shareholder requests to inspect the company's accounting books, he or she shall submit a written request to the company stating the purpose.

If the company has a reasonable basis to believe that the shareholder's inspection of the accounting books has an improper purpose and may harm the legitimate interests of the company, it may refuse to provide the inspection, and shall reply to the shareholder in writing and explain the reasons within 15 days from the date of the shareholder's written request. If the company refuses to provide inspection, the shareholder may call for Yu to request the people's court to require the company to provide inspection. Article 34 of the Company Law of the People's Republic of China Shareholders shall receive dividends in accordance with the proportion of their paid-in capital contributions; When the company adds new capital, shareholders have the right to subscribe for capital contributions in accordance with the proportion of paid-in capital contributions.

However, all shareholders agree not to distribute dividends in accordance with the proportion of capital contribution or do not subscribe for capital contribution in priority according to the proportion of capital contribution.

In fact, there is no fixed standard for the distribution of equity, because the situation of each company is different. Different business models, the industry in which the company is located and the stage the company is in, as well as the composition of the founding team, all determine that the design of each company's equity distribution plan is different, and it is also very different.

Especially for different business models, the contribution of each partner and his importance to the company must be different, and the equity should also be different.

For example, for those companies that focus on operation, the importance of COO may be much greater than that of other companies such as CMO or CFO, etc., and the role of technology companies must be CTO, and there are some companies with a very large demand for funds, the importance of CFO may be greater, so different business models determine that we need to consider different factors when designing the equity structure, and consider what the contribution of each partner to the future of the company is. Then decide how many shares are more appropriate, and finally everyone agrees.

For example, those product-led business models, then his planning of products and the creation of the future ** chain will be more important, so in the design of the equity structure, it is necessary to consider how to integrate upstream and downstream resources. Other platform-based business models are very concerned about the construction of the ecosystem, so at this time, it is necessary to consider the future adjustability of the equity structure, and some co-creation characteristics.

The second method of equity distribution is equal distribution. Two shareholders, one with a 60% stake and the other with a 40% stake, but the equity is divided equally. The method of equal distribution can weaken the control of the founders of the company and influence the company's decision-making.

If it is an Internet company, you can also consider technology shares.

However, it is better for your partners to negotiate the proportion of equity distribution.

Equity distribution is to consider the decision-making power on the one hand, and the benefit distribution right on the other hand, which can be combined or separated.

If you want the company to go further, it is not recommended to disperse the decision-making power, thank you.

How to make a reasonable equity allocation for start-ups.

Distribute more shares according to who makes a profit.

Hello, you are responding to a common problem that entangles many entrepreneurs.

Having handled several similar cases, such as partnerships, entrepreneurship, differences, equity disputes, and separation, if there is a good plan in the early stage and the implementation of relevant agreements, to put it bluntly, it is ugly to say in the front, which has a positive effect on avoiding unwarranted suspicion and distribution contradictions in the future.

I think you have thought a lot about the initial planning plan, but there are several issues involved, the first is the problem determined by the team members, the second is what kind of distribution plan can promote the stable development of the team, the third project team is in what external form to carry out the work, and finally the signing of relevant agreements and relevant procedures and procedures.

If you set up a company, you will formally make a decision in the form of a resolution of the shareholders' meeting, and the articles of association, legal representative, shareholding structure, distribution of benefits, etc. need to be agreed. In this case, it is difficult to provide suitable services for the registered company, and it is better to find a lawyer or consulting company with relevant experience for planning and consulting of the company structure.

The energy should be focused on promoting the project and earning profits, and the necessary work needs to be done in the early stage to avoid unnecessary internal management losses after the fact.

I wish you a prosperous career!

Please refer to the following insights:

In terms of business, don't take into account human feelings or bend the law, the purpose is to do a good job, which is fundamental.

It's good that you can take into account how your employees feel, but it's hard to say about shares, because your goal is to build a good brotherly relationship and retain talent. Of course, absolute control is a must, and the ownership of the company must be mastered, and for colleagues, you may wish to engage in equity incentives, that is, what kind of performance commitment is achieved to how many shares can be given. If they don't do it, that is, dividends, the initial payment of entrepreneurship is very important, don't stick to this.

As for this brother, if there is a difference of opinion, it is best not to introduce it, after all, the shopping mall is like a battlefield, if the shares are divided equally, what should you do if there is a difference of opinion at that time, have you thought about it, when the time comes, none of you will have control, do you know what the consequences are? It's okay to be a brother in life.

In business, try not to involve personal feelings in the business field! If your friend agrees to divide the shares equally, then you can give him a high point, and you can be the second largest shareholder (mainly depending on ability). In fact, as long as the rules are formulated, everyone will slowly adapt to the rules.

You can also refer to the recent "Chinese Partner", it is inevitable that there will be differences in cooperation between brothers, which is normal!