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Structure

Salary Replacement – co-founders and employees will agree to work for an extremely low salary in exchange for an ownership stake in the
company that they believe will appreciate greatly in value in the future
Ideation - the extent to which each co-founder contributed to the company in its early stages should inform how the equity is split. Whoever
proposed the chief value proposition of the company typically receives the greatest percentage of equity ownership.
Startup Stage – Co-founders and employees alike who join a company in its earliest stages of development, such as before the seed round or series
A funding, often receive larger piece of equity to recognize the time they invested and the risk they assumed in working for such a young company.
Seed Capital – If one founder provided more seed capital into the business than the other, he or she will often be rewarded for that through equity.
For example, if the co-founders’ contributions to the company are otherwise equal, a 60/40 equity split might be established.

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