Startups : The Founders Corner
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Control is Measurable - Measure it, set course, and get back to work. We believe Founders care about control and that they should. We believe Founders deserve to know the effect of the decisions they make on the distribution of power in their own company. We believe that when Founders can see the effect of the decisions they make in hard numbers, those decisions become faster, more efficient, and more rational. |
"In general, there are only two things VC's care about when making investments, economics and control."
-Brad Feld in Venture Deals
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Splitting Equity Among Founders
Splitting equity is hard enough without understanding the effects on control. Lack of information is paralyzing and made harder by the very limited options in companies with a small number of shareholders. (There are only three possible distributions of power in a company with 3 shareholders!) We can help you make things transparent. (We can even help you design voting systems that align percentage ownership with control.)
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Raising Funds
Raising Funds is often a great economic decision for startups. But the control you give up is real and extremely hard to get back (even if the founders own the majority of economic interest). With board seats held for preferred shareholders, and other protective provisions, control in a startup is even more complicated than in public companies.
Founders deserve to understand their own control and that of all the stake holders they bring on board. Also, understanding how the distribution of power changes under available scenarios allows you to weight control along with other important factors, negotiate better and make smarter decisions. |
Early Employee Compensation
Employee compensation is key in a startup and the best entrepreneurs know it's not all about money and options. Knowing the effects of your employee compensation choices on the distribution of power in your company will help you make the best decisions. In many cases, the spreading of ownership among employees can even increase founders control.
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Winning Support for Key Decisions
As a founder, inevitably, the time will come when you need to make a key decision that requires shareholder approval. Rotary Gallop specializes in winning crucial shareholder votes in public companies. We can help you understand the best ways to build support, and maximize your chances of winning.
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