Back to the text, how do small companies allocate equity?
First of all, the company consists of employees, founders, partners and investors.
In the past, the distribution of equity was basically based on the share of capital as the share of the enterprise. The more money you give, the greater the share.
However, under the upsurge of the impact of the Internet, especially the mobile Internet industry, it has become the common sense of many investors to spend a lot of money on small stocks.
Equity distribution has developed from the gold standard in the past to the people standard now.
So what is a reasonable ownership structure?
The founders account for 60-70% in the initial stage, and option pool has 10-20% employees and 20-30% co-founders. Can attack and defend from the top, relatively open. To maintain these three lines, we should leave a margin, and skillfully use structural design can achieve the effect of relative checks and balances.
How to distribute the equity of all parties more reasonably?
First, set the quantity according to the enterprise type.
Resource-driven enterprises have a large share of resources and a small share of capital and manpower.
In capital-driven enterprises, capital accounts for a large share, while resources and manpower account for a small share.
In human-driven enterprises, manpower accounts for a large share, while resources and funds account for a small share.
For example, if a taxi internet company is human-driven, then human shares account for 50% of the company's total share capital, 30% of funds and 20% of resources. Then in the capital, A pays 20%, B pays 5% and C pays 5%. In the resource block, a is 10%, b is 10%, and c is 0%. In terms of manpower, A pays 20%, B pays 25% and C pays 5%.
Summary: A's share capital = 20%+10%+20% = 50%; Share capital of B = 5%+10%+25% = 40%; Share capital of C =5%+5%= 10%, that is, A accounts for 50%, B accounts for 40%, and C accounts for 10%.
How to treat capital stocks and manpower stocks more appropriately?
Capital stock: silver stock, which is the registration of bosses' real money;
Manpower stock: body stock, a professional manager shares in technology, manpower and ability, which is equivalent to on-the-job dividends. It should be linked to the four-year full-time service period of the entrepreneurial team.
Case: Shanxi merchants-silver stocks, body stocks and financial stocks. Although physical stocks have given shareholders a lot of profits, they have also created greater profits for shareholders. The human resources unit uses this analogy.
10 equity allocation trap
(1) No boss in the team is convinced by everyone.
(2) Only employees, no partners.
(3) The team distributes the equity in full according to the proportion of capital contribution.
(4) No partner equity distribution agreement has been signed.
(5) There is no withdrawal mechanism for the partner's equity.
(6) External investors hold shares of the company.
(7) issue a large number of shares to part-time employees.
(8) Commitment to issue too many shares to short-term resources.
(9) No equity is reserved for future employees.
(10) There is no withdrawal mechanism for spouse's equity.
How to give employees equity incentives
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