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For startup, at what terms and conditions partnership or core team should be based on?

Friends, Actually I am in process of forming team. Now how to decide upon each partner’s % of share or stake in the startup company? What are the basic things one should consider while forming the core team and deciding upon % of share or stake of the company?

  1. Whether this should be purely on the basis of financial investment of all 4 partners or also depends upon the stage or period at which each has been associated with startup core team?

  2. What if 2 of them join core team lil bit late or let say after 3-6 months of formation of company then how to decide upon % of share?

  3. How much importance it is for startup core team to decide exit clause also at the initial stage and what should be basis for the same?

  4. What if one cofounder decides to leave the core startup team then on how that person should be compensated based on his/her % of share or stake at the company?

Please friends, Need your valuable inputs because formation of strong team is one the most important things for any startup to begin with.

Look forward to hear from all of you. Thank you in advance.

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  1. hi vishal,

    we have quite a few posts on related topics that should help you – pls use the search engine – key in “equity” to start with!

    also, pls browse through the ASK section. you will find a couple of similar posts in ASK itself!

  2. Thank you so much asha for ur immediate help. will search for the relevant info. if not found then will seek ur help.

    Any how, if somebody can reply to specific questions mentioned in the post then it would be great help.

    Look forward to hear from all of you. Thanks once again.

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