Morning Startup – Dynamic Equity Splitting with Jesse Emia
Jesse Emia from Keepspace talks to us about his exprience with implementing the Dynamic Equity Model in his startup. The Dynamic Equity Model splits the equity in your startup such that there is a fair balance between the equity rewarded to team members in your startup, and the financial risk the startup takes on.
Here’s the full video of Jesse’s talk – well worth a watch for anyone thinking about bringing new team members onboard their startups, but hesitant to do so for fear of giving away too much equity to the wrong people.
This session was recorded as part of Morning Startup Perth – join the next meetup here.
Description of the event from meetup:
Dynamic Equity Splitting
The importance of this topic can be literally life or death for startup businesses.
The number of times startups fail due to team dysfunction and equity issues between initial founders is astounding. These problems remove focus from product development, sales and growth, often leading to a startup’s ultimate demise.
If you have been wanting to figure out how to bring new team members into your startup with minimal financial risk to your startup capital, believe in a fair and just system for your team and are willing to share, then this is a talk you do not want to miss!
Jesse will be showing his success within the Dynamic Equity Model that originated from Mike Moyer’s Slicing Pie Model.
He will provide a unique look into how Dynamic Equity was implemented in the early stages of his company KeepSpace, and the benefits it has achieved in regards to:
– Fair equity proportions
– Founding participant’s inputs
– Adding and removing participants without re-negotiaiton of equity contributions
– Tracking of team development, and
– A more fair and accurate value within a traditional shareholders agreement
So come along and understand the differences of running a business initially within a fixed equity model based on a shareholders agreement, and the variant of starting with a Dynamic Equity Fund Agreement to handle the agile requirements of a volatile, changing startup team.