Hellmann On Splitting Equity
How do you build a business around a potentially tumultuous founder team? How do you avoid falling into an ownership plan that leaves you with too little equity over time?
Dr. Thomas Hellman is a leading expert on entrepreneurial finance and high growth entrepreneurship. He recently moved from the Sauder School of Business at UBC to Oxford University and you can find more information on him here: http://www.sbs.ox.ac.uk/community/people/thomas-hellmann
Here, he is talking to e101 alums and entrepreneurs Kinsey Powell and Matt Parson about key issues that arise as founders split equity.
Video Application
As you watch the video consider these questions:
1. How can you apply some of Hellmann’s specific insights to structuring the equity in your particular business?
2. What can you do now to prepare for future entrants who will also want an equity stake in your business? Sketch out your best guess at what the ownership picture might look like in your venture over the next 2 to 3 years.
The Video
Splitting Equity from e101 on Vimeo.
Recommended Websites from Thomas
http://www.crunchbase.com/
This is a useful website for reading about current event related to venture capital and entrepreneurial finance.