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

4 points by ovatsug25 9 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 9 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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