Working Through The Numbers on Ownership
By Nina Kaufman, Esq.I’m often asked, “what’s a fair division of ownership between business partners” and “how much equity should I give an investor?” The short and obvious answer is: it depends.
In his short post by the same name, David Ronick, founder of UpStart Advisors, illustrates how one entrepreneur thought through the process when raising capital, after initially sharing some of the ownership with key employees and advisors.
As David points out, each time you add more people to the mix, you dilute the proportions that the earlier owners were entitled to.
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