Mike Moyer -“Just because we agree to something, it doesn’t mean it’s fair , Things Change”
WhatsCookin’ has been working on the Speaker Series and we got another amazing event with one of the influential people yesterday. After the event, all I could say in my mind was “I’m going to read his books”. You might be wondering “who was the speaker for yesterday’s event?” His name is Mike Moyer, an entrepreneur and author of “How To Make Colleges Want You”, “College Peas”, “Pitch Ninja”, “Fair&Square”, “Trade Show Samurai”, “Will Work For Pie” and “Slicing Pie” series.
He discussed the Issue of Fair Equity Sharing for startups. I believe it’s a common issue that is always being faced by startup businesses. I would like to point out the fact that he did amazingly well-explaining. Startups always have high failure rates. Especially, you will know these things when you are the founder of a startup business. Among these things, he mentioned the fact that most of the founders always want to have the perfect equity split between their co-founders.
Mike let us imagine and explained with this example, and it went like, “imagine that you are the founder of a small startup company, and you have two other co-founders, your business friend and the other one is your rich uncle. Even though you are the founder of this small company, your rich uncle invested more than you in this business. Nevertheless, you are investing too, not only does money count as an investment, your time, energy, and ideas are also being invested. It is true that you are the one who gives all your time and energy into this but when it comes to splitting the equity, your rich uncle gets the higher percentages of income than you. So, the question is “Will this thing always be like this?” As he said, “Just because we agree to something, it doesn’t mean it’s fair, Things Change”. “When your business starts rising, you will probably need less of your rich uncle’s investment and it will not be like the beginning anymore. So, you would start to get higher percentages of income than your uncle. But there will also be a time when you may need his investments again, things don’t stay constant.”
As Mike mentioned in the event, it matters when you build your startup using equity instead of cash. I suppose logical fairness is the main goal for all of these. For those people who didn’t attend the virtual event, please wait for the whole recording to be uploaded on our YouTube page. The whole event was perfectly fine with those brief contents and simple examples from his books. And thanks to WhatsCookin’, I felt like I’ve got some knowledge to explore. If you would like to reach out to Mike Moyer, you can find him at the links below:
Linkedin : https://www.linkedin.com/in/mikemoyer/
#startup #advice #askmeanything #equity #governancesharing
Itís nearly impossible to find educated people for this topic, but you seem like you know what youíre talking about! Thanks