A cofounder is asking for more equity post fund-raising. What should I do?

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JASON LEMKIN

Listen.

It usually means something is wrong. Or at least, off:

  • If you got the equity splits right at first, usually, big issues don’t come up later. This may be a sign you need to fix things here.
  • If your co-founder isn’t willing to take the dilution that comes with raising capital and you are— that could be a sign you guys are misaligned here on how — and if — to Go Big. This is much harder to fix.

In any event, it’s not the right time to bring the topic up if you guys are communicating well. So I suspect you aren’t. You’re aren’t aligned and “thinking as one” co-founding entity. And it’s on a super important issue.

So listen. Right now.

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Published on April 30, 2018
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