As a reminder, the purpose of “Startup Snacks” is to provide the startup community with ONE actionable item per week to move your startup forward. Some of it will be original content, some not. No pride here – and frankly, why recreate the wheel if somebody has already put together some great content or tools that will benefit the startup community. If it can help you in your journey I will share it!
If you missed any of the previous “Startup Snacks” – you can find them here!
This week’s snack deals with the startup team and methodologies for doling out equity to the founding team and operating agreements. Granted this is not a fun exercise or the most glamorous topic, but it is something that all founding teams should prepare and have documented before everyone jumps in – to save you headaches in the long run.
We have seen founding team blow-ups and it is much easier to unwind these if all of the operating agreement documents and splits are prepared ahead of time.
Here are a few methodologies and templates to consider:
- Founders Equity Split Wizard from FounderSuite – easy, simple to use, straightforward – click here for a copy – copy this document to make your own!
- Slicing Pie Methodology – a dynamic model for structuring equity and ownership. Slicing Pie simply provides a fair and logical structure to anticipate and manage the changes. More summary information here. And a spreadsheet here for using this methodology. Here is the website for additional information.
- Founder Agreement Template from University of Pennsylvania Law School Entrepreneurship Legal Clinic – click here.
- Startup Operations Tracker Document – from headcount to expenses to funding to buzz – click here for document.
Also, consider registering for the University of Cincinnati Law Pro-Bono Day – information below.
October 5 – REBUILD Conference – REBUILD, formerly the High Performance Buildings Seminar, is a conference that equips leaders to build sustainable value in their organizations. Divergent questions lead to innovation. Info/registration here.
October 11 – The Green Room featuring 4 startups in the renewable space. This time around we will be featuring Orion Electronics, Cleanup Collective, Rich Life Farms, and Small World Market. Register to attend via this link – info/registration here.
Oct 10 – 14 – StartupCincy Week – Learn more here!
October 14 – StartupCincy Week Job Fair – contact Abby at Cintrifuse (firstname.lastname@example.org) if your company is interested in participating.
October 18 – BioOhio Biotech Forum – Miami University and BioOhio – info/registration here.
October 19 – “Connecting the Coasts to the Heartland” – presented by One America Works, OhioX, Youngstown Incubator, HG Ventures, Youngstown Business Incubator, and Comeback Capital – info/registration here.
October 20 – “Free Legal Advice to Better Your Business” – University of Cincinnati Entrepreneurship and Community Development Clinic and Duke Energy – info/registration here.
October 26 – OhioX/Rev1 Corporate Innovation Summit – info/registration here.
Our mission at the Alloy Growth Lab is to help startups with the following:
- Navigating the investment/funding landscape;
- Connecting them to fellow entrepreneurs, potential customers, and regional talent;
- Developing and managing a strong growth strategy;
- Gaining traction with the right product and market.