Table of income standards for patent partners

Equity allocation is an unavoidable topic for start-ups. If it is not handled properly, it may produce internal contradictions and affect the future development of the enterprise. If the shares are divided equally, everyone enjoys the same shares, which seems fair, but in fact it makes the partners with many resources and contacts dissatisfied and lays a hidden danger. In fact, the ultimate goal of equity allocation is to make participants feel that their efforts have been rewarded and they are willing to take risks.

Several groups of balances need to be considered when allocating equity. The first is the internal balance of the company, including the balance of capital contribution and equity of company members, the balance of risks and equity of employees; Secondly, the balance between the company and investors, including whether the input and output of investors are balanced, and whether the equity structure between investors and companies is balanced; Finally, the balance of each financing stage mainly refers to whether the equity distribution is reserved for future financing.

On this basis, we need to consider how to be fair and reasonable in the distribution process, which is conducive to the development of the company. To sum up, we need to pay attention to the following points:

First, pay attention to the input problem. When distributing shares, whoever invests more should get more shares. For a simple example, if the founder is fully committed to the company, he will spend time, money, contacts, etc. And other members of the company are only part-time, then more shares should be allocated to the founder.

Second, pay attention to the issue of contribution. Every team member of a startup company will play a certain role in the company according to their own technical level and talent. When allocating equity, we should consider everyone's role in the future development of the company. The bigger the role, the more fairness we get. On the other hand, if a team member invests key funds in the company, his contribution should also be considered in the equity distribution.

Third, pay attention to the problem of control. In the future development of the company, it is inevitable to carry out financing, which will not only change the development of the company, but also affect the ownership structure of the company and even the transfer of control rights. If entrepreneurs don't want their shares to be diluted too much, they need to consider a problem at the beginning of equity allocation, reserve a part of equity for subsequent financing, and set up option pool.