Joining a startup as a founder, how much should each founder invest?

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JASON LEMKIN

In both my start-ups, I was the only co-founder that invested cash.

It didn’t matter.

  • First, you can get reimbursed in the first venture round — if amount is small — if that’s what you want. This is what I did the first time. As the amount I put in exceeded my savings.
  • Second, you can find some formula to convert it to more stock — cheaply. This is what I did the second time. I came out way, way ahead.

It’s good to be equally committed. But this doesn’t mean everything has to be equal. You do what you have to, to win in a start-up. What that means for each founder can vary.

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Published on February 17, 2017
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