Re:Dispensing with a Co-founder
by brlewis on Thursday October 18, 2007 @08:59AM
(#69645)
He posted here asking about "Dispensing with a Co-Founder", not "Talking to a Co-Founder about Risk."
Different people involved in a startup have different risk tolerance. The general solution is for someone with more money and more risk tolerance to risk more money and get equity. I would advise this guy to offer to pay the whole $90 in exchange for a higher equity stake in the corporation.
Another option would be to delay incorporating until you're getting seed funding, and get some incorporation advice from your funder. YC prefers startups not to have incorporated when they apply, for example.
Different people involved in a startup have different risk tolerance. The general solution is for someone with more money and more risk tolerance to risk more money and get equity. I would advise this guy to offer to pay the whole $90 in exchange for a higher equity stake in the corporation.
Another option would be to delay incorporating until you're getting seed funding, and get some incorporation advice from your funder. YC prefers startups not to have incorporated when they apply, for example.