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Ask HN: How to do equity split when a founder can and puts in more money?

4 points by ovatsug25 10 years ago · 2 comments · 1 min read


Hey guys!

I have more cash than others on my founding team. I've already been putting more of it in than the rest of the team. What's the fair / standard way of handling this situation so that the team continues to congeal? I'm pretty confident that we have a smash hit on our hands. Is there a fair way of doing this long term and short term? Thanks!

tlb 10 years ago

It's best to put in the cash on the same terms as an outside investor would, and split the founder shares evenly. The SAFE investment documents [0] are standard and battle-tested.

[0] http://www.ycombinator.com/documents/#safe

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