moonchild
VIP Contributor
Sharing of equity can be defined as the process of sharing ownership in a business, when a business is owned by more than one person there has to be a way that equity is shared, this can be done by selling stocks or by giving ownership to the founding members, to share equity in a business depends on the responsibility that is bestowed on each member.
For example the CEO should have the largest equity because he will be doing most of the work like talking with investors and generally marketing, we also have technical members thoughts focus on product development, so ownership is divided based on the responsibility of each member of the team.
Be able to share equity in a more efficient way, indulging the service of a lawyer is very important, because he will measure the responsibility and share the equity accordingly.
But it is advised for founders to be generous with equity, so as to be able to attract quality workers for the company, when a valuable company is built all of the equity holders will have something substantial, but when a founder is not giving out much equity or salary, getting high quality workers will be hard especially when you're just starting out.
For example the CEO should have the largest equity because he will be doing most of the work like talking with investors and generally marketing, we also have technical members thoughts focus on product development, so ownership is divided based on the responsibility of each member of the team.
Be able to share equity in a more efficient way, indulging the service of a lawyer is very important, because he will measure the responsibility and share the equity accordingly.
But it is advised for founders to be generous with equity, so as to be able to attract quality workers for the company, when a valuable company is built all of the equity holders will have something substantial, but when a founder is not giving out much equity or salary, getting high quality workers will be hard especially when you're just starting out.
