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Serial entrepreneur and CEO Joe Chin explains how to find a co-founder and divide or allocate shares
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Live Video Event Lunch and Learn
Wed Apr 10
Joe ChinCEO of SourcePad, Founder of Best PracticesSerial entrepreneur, worked with 60+ startups
Finding a Co-Founder & Dividing up Shares
12:05 PMlivestream.com/bestpracticesbusiness
Finding● Approach / Mindset● Preparation● Methods
Dividing● 2 types of treatment● Reference / Benchmarks● Framework example
Meet Joe…● 4 time founder / CEO● Raised $20 Million, 2 Exits
● Opinionated Guy…
● Entrepreneur teacher (60+ companies)
Why co-founder?
Share the load
Lacking the other half (business/tech)
Have no funds "need tech"
Approach / mindset
#1 Asking someone to "invest"
● be prepared
● be the best in class
Preparation
Have:
● Elevator pitch
● Exec sum, powerpoint
● How does this translate to $$
● Who are you?
Preparation
Have:
● Elevator pitch
● Exec sum, powerpoint
● How does this translate to $$
● Who are you?
Preparation
Have:
● Elevator pitch
● Exec sum, powerpoint
● How does this translate to $$
● Who are you?
covered in financing LVE
The upsideHow does this translate to $$
Who are you?The partner
Positioning applies to people
A well-written resume/intro vs. a poor one
vs.
Where?
You know
Where?
You know
Craigslist
Listservs
EventsNetworking
Mass emailing
Positioning more importantSample #1Seeking Co-Founder/CTO
We are looking to partner with an entrepreneurial-minded Software designer/programmer who has an engineering or Computer Science degree from a reputable University.
You will be the Co-Founder/CTO who will have the responsibility of come-up of a realistic "storyboards", screen demos and basic prototypes, which will help the company express the ideas and generate interest and funding during the early stage.
You will also be responsible to hire or outsource part of any development of the application in order to develop a framework that will allow us to target our core market quickly, and adding additional features to our platforms as the business grows.
You're Qualifications • Computer Science, Software Engineering or Software Development degree from a reputable University• You had prior experienced developing an appointment style of software system • You love problem solving, have an entrepreneurial nature and enjoy pushing technical boundaries• You have sound understanding of database coding, and writing SQL• You are talented, creative C# .Net Software Developer etc.
Positioning more importantSample #1Seeking Co-Founder/CTO
We are looking to partner with an entrepreneurial-minded Software designer/programmer who has an engineering or Computer Science degree from a reputable University.
You will be the Co-Founder/CTO who will have the responsibility of come-up of a realistic "storyboards", screen demos and basic prototypes, which will help the company express the ideas and generate interest and funding during the early stage.
You will also be responsible to hire or outsource part of any development of the application in order to develop a framework that will allow us to target our core market quickly, and adding additional features to our platforms as the business grows.
You're Qualifications • Computer Science, Software Engineering or Software Development degree from a reputable University• You had prior experienced developing an appointment style of software system • You love problem solving, have an entrepreneurial nature and enjoy pushing technical boundaries• You have sound understanding of database coding, and writing SQL• You are talented, creative C# .Net Software Developer etc.
BAD
Positioning more importantSample #2Seeking Co-Founder/CTO
I'm a Co-Founder of _______, an online platform that makes commercial real estate leasing easier. ________ is a one-stop-shop for leasing that connects tenants with the full complement of providers they need for finding and setting up a new office, restaurant, or store. We are looking to bring on a CTO / web developer (who isn't?!?!).
Our platform is being built in Ruby and we are looking to bring someone on full time to take ownership of it. We have raised money and were recently selected as one of only 10 student led startups to pitch at DEMO (http://demo.com/).
This market is ripe for disruption--think Zillow and Trulia for commercial--come be a part of it!
If you or anyone you know might be interested, please send them my way: _________________
Positioning more importantSample #2Seeking Co-Founder/CTO
I'm a Co-Founder of _______, an online platform that makes commercial real estate leasing easier. ________ is a one-stop-shop for leasing that connects tenants with the full complement of providers they need for finding and setting up a new office, restaurant, or store. We are looking to bring on a CTO / web developer (who isn't?!?!).
Our platform is being built in Ruby and we are looking to bring someone on full time to take ownership of it. We have raised money and were recently selected as one of only 10 student led startups to pitch at DEMO (http://demo.com/).
This market is ripe for disruption--think Zillow and Trulia for commercial--come be a part of it!
If you or anyone you know might be interested, please send them my way: _________________
GOOD
Approach / mindset
#2 Don't compromise !
● Your most important hire
● Most scrutiny / not less
GuidelinesMore scrutiny / not less
● Give / invite
Sneaky tests
● Weekend tests, email response times, task oriented meetings
Get to know each other
● Have to mesh --> forming the "rock"
Sponsor
Client - True &Co
Sponsor
Client- Twigmore
Dividing Equity
Partnership vs. not
Simple
Limit to unbalance
Feels right
Industry norms
Terribly unbalanced
Feels like employee
Reference/BenchmarkComprehensive survey on comp
http://bit.ly/HvaX0C
Well-done --> authority
How to use benchmarkWhere are you (or the other person)
As much art as scienceTime commitments
Progress already madeRole
Experience
There from beginning
Sample Arrangements
Partner1 to 1, 1 to 50%, 1 to 25%
NonSurvival comp w/ upside kicker
Employee-like share (more because not "market")
Foregoing : Equal or unequal
Simple
Sample Arrangements
Template: http://bit.ly/I4eWAp
Comprehensive / Analytical
50% Principal | 50% Work Value
Happy Partnering !
Wed May 9 @ NYU 44 West Fourth Street, Room #1-70
Fabrice Grinda: Founder/CEO OLX (founded and sold Zingy for $80 mil )Birchbox (tentative)Register: tbd
Web Mobile RoR iPhone Android
we build ideas
Site: sourcepad.com Email: [email protected]
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If you like this event, PLEASE tell others (email,tweet,blog)
This slide deck: http://bit.ly/HHmOfI