When asked about shareholder agreements, can anybody give some insight on the ideal response? Is the #1 reason investors ask so they can make sure that the founders are comfortable with their stake?
Are they understanding if certain founders carry a sizable chunk or does that lead to more questions than answers?
When we originally sat down to go over our percentage breakdown, we considered some of the following:
-idea origins
-research & development
-recruiting/hiring
-tech contributions
-money invested
-time commitment
-expertise
-future contributions
After talking things through, here was equity breakdown for four co-founders: 60/20/12/8
Do prospective investors just want to know that we've talked things through or would they challenge (e.g.) myself for holding a significant portion more?
