February 12, 2018 by Fred Haney
How Much Stock Should I Share with Management Teams?
Initial implementation team. No easy answer. Negotiate. Make a list of the people who will be involved in implementing the initial product offering, factoring in contributions in the past and the future. Weight future performance higher. Everyone needs to understand that shares will be diluted over time but if you are going for a billion dollar valuation then one percent gets $10M. That might not be a bad deal. Think through what the future value might be worth and discount that back to a net present value. Learn more at the video below.