3 common myths about founders in VC-backed companies.
𝟭) 𝗧𝗵𝗲𝘆 𝘀𝗽𝗹𝗶𝘁 𝘁𝗵𝗲 𝗼𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽 𝗲𝗾𝘂𝗮𝗹𝗹𝘆
Most actually split unequally, even amongst 2-founder teams. And if you have 3, 4, or 5 founders, equal splits are rare.
𝟮) 𝗧𝗵𝗲𝘆 𝗮𝗹𝘄𝗮𝘆𝘀 𝘀𝘁𝗮𝘆 𝘁𝗼𝗴𝗲𝘁𝗵𝗲𝗿
25% of VC-backed companies will lose a cofounder in the first 4 years – and that figure is increasing these days.
𝟯) 𝗧𝗵𝗲𝘆 𝗼𝘄𝗻 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝟱𝟬% 𝗼𝗳 𝘁𝗵𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝗮𝗳𝘁𝗲𝗿 𝗦𝗲𝗿𝗶𝗲𝘀 𝗔
Median founder ownership is 36% after Series A today. That does not mean the investors own the rest! The employees also have a healthy chunk (about 14% or so).
Building a venture-backed company is awesome but it comes with significant tradeoffs. Don't raise from VCs without understanding the game.
Full report on founder ownership here: https://lnkd.in/gGWpFpEm
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