Advance

Out

Advance

Retreat

When the return reaches 2 times, the company can buy back

1 year 28%

3 years*24%

66.67

Prohibition of dilution in the same proportion

1st listing venture capital appointment

25% public shares

Net investment survey (leading venture capital)

33.34

The typical distribution method of this model is that the founders account for more than two-thirds, that is, 67% of the equity, the partners account for 18% of the equity, and 15% of the team’s equity is reserved; this model is suitable for the founders to invest the most money and have the most ability. Strong situation. Among shareholders, the absolute holding type is democratic in form, but in the end it is the boss who has the right to make a decision/veto.

The typical distribution method of this model is that the founder holds 51% of the equity, the partners together account for 34% of the equity, and the employees reserve 15% of the equity. Under this model, except for a few things (such as capital increase, dissolution, update of the charter, etc.) that require collective decision-making, most of the other things can be decided by the boss alone.

The typical distribution method of this model is that the founder holds 34% of the equity, the partner team holds 51% of the equity, and the incentive equity accounts for 15%. This model is mainly applicable to the situation where the abilities of the partner team complement each other, everyone is strong, and the boss only has a strategic comparative advantage, so the equity of the basic partners is relatively even.

There is a big problem with reserving investor shares. Assuming that the founder reserves 20% of the equity to investors behind, and the investor buys shares from him, this is called "buying old stocks." In terms of legal relations, this is the relationship between the investor and the entrepreneur's personal shares, not the relationship with the company. This money cannot be entered into the company's account, and becomes the founder's personal realization, not company financing. Moreover, once the founder sells old stocks and investors come in at a high premium, the founder immediately faces a large tax.

So why is it recommended to reserve incentive shares?

If the early equity distribution is unreasonable, then part of it can be adjusted to the old stocks held on behalf of the company. If there are newcomers involved (whether it is an executive, a partner or an employee), it can also be handled by reserving equity.

weight

light

Process changes to earn cash flow

3 conditions

New constitution agreement