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How to share startup equity with a new partner?

I have a new valuable partner in my startup that completes me on marketing. He will be involved part-time.
Please share your experience - what compensation scheme would be reasonable in this situation?

I am thinking of something like this:
Mentor will get 10% of equity on $0 to $10M company evaluation.
Starting $10M the percentage will grow linearly, topping 30% at $100M+ company evaluation.
Diluted proportionally by investors.
Mentor will get 5% of influenced revenue made from Mentor's references.

3 Replies

Michael Barnathan
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Michael Barnathan Entrepreneur • Advisor
Co-Founder of The Mountaintop Program, Google Alum
Don't make things too complicated - you, your other founders and employees, and investors need to be easily able to understand the cap table.
Eleanor Carman
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Eleanor Carman Entrepreneur • Advisor
Incoming BLP Sales Associate at LinkedIn
We have tons of discussions about this very topic already on FD:Discuss. If you do a quick search for these keywords - equity, venture capital, etc. you'll find discussions that'll be helpful. Here are the specific discussions that I think might help!
Kenneth Larson
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Kenneth Larson Advisor
Retired Aerospace Contracts Manager, MicroMentor Volunteer and Founder "Smalltofeds"
Complete a business plan and an operating agreement together. The former defines the company, the latter defines the relationship. When the process is complete the equity share will be a natural fallout of the roles you have developed along the way.

You may view sample business plans and an operating agreement at the site linked below:


smalltofeds.com/2013/06/practical-intellectual-property.html

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