Is the Founder better off having allocated shares for employees or not?

Investors claim 20-30\% of startup shares, while founders should have over 60\% in total. You may also leave some available pool (5\%), but don’t forget to allocate 10\% to employees. Based on the most outstanding skills of co-founders, define your roles clearly within the company and assign job titles.

Why do investors generally prefer a team to a solo entrepreneur?

Investors drive the narrative that startups need to be scalable and started by teams, because they typically provide the highest potential for financial returns. Teams are also aligned with their interest as investors, due to the operational, governance, and equity burden splits between multiple founders.

What does Wefunder do?

Wefunder is a crowdfunding platform that connects startups to investors, and investors to startups. It has a $100 minimum, and fees can range from 2\% to 3.5\%, depending on your payment method. Founders can start raising funds for free, but you may have to pay 7.5\% of what you raised.

Is having a co-founder Good?

Support of Investors Investors, generally, tend to support companies which are run by a team than those who run solo. They trust companies with multiple founders and are likely to fund them more easily. So it is best to get a co-founder or co-founders by your side if you want to make the funding process smoother.

When should I take a co-founder?

If you have experienced two or more consistent years of slow growth as a solo-entrepreneur, it may be time to consider investing in a co-founder. My journey in building my fourth company came with a unique set of challenges that I was unable to handle alone.

What is a Reg A+ offering?

Regulation A+ is the colloquial name given to the SEC rules that amended and expanded a rarely used offering exemption named Regulation A. As amended, Regulation A+ provides an exemption for U.S. and Canadian companies to raise up to $50 million in a 12-month period.

What happens when a co-founder leaves the company?

If a co-founder leaves the Company for any reason, and this happens frequently, and there is no contractual vesting put in place, that founder can take with her substantial ownership of the Company.

Should you share your success with co-founders and non-founders?

Even though you may have the urge to share the potential success with everyone that has helped you along the way and to tell them all about it, there is a right way to do this with both co-founders and non-founders to avoid situations where there is confusion about the ownership of your company.

Do I need a lawyer for a co-founder exit?

The last thing you want to deal with is a messy exit, so it’s very important that in any co-founder exit scenario you talk to your attorney. Your attorney can make sure that you handle all aspects of the exit according to legal best practices and help you avoid future legal disputes.

Is confusion about your ownership structure keeping investors away?

Confusion about your ownership structure, or a poorly planned structure, can create unnecessary administrative hassle and legal expense, and in certain situations can ward off investors. Here are some matters to consider as you establish the ownership structure (capitalization) of your company: