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How should we negotiate equity splits in our startup?

An example of an AI chatbot conversation about negotiating equity splits in a startup.

😀
You

How should we negotiate equity splits in our startup?

MagicBuddy
MagicBuddy

Negotiating equity splits can be tricky. It's important to consider each founder's contribution, skills, and the amount of time they will invest.

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You

What factors should we consider when deciding on the split?

MagicBuddy
MagicBuddy

Key factors include initial investment, expertise, time commitment, and the roles each founder will play in the company.

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You

Is there a standard formula for equity splits?

MagicBuddy
MagicBuddy

There's no one-size-fits-all formula, but many startups use a combination of equal splits and adjustments based on contributions.

😀
You

How can we ensure that everyone feels satisfied with the agreement?

MagicBuddy
MagicBuddy

Open communication is crucial. Discuss expectations and be transparent about each person's contributions to foster trust.

😀
You

What if we can't agree on the split?

MagicBuddy
MagicBuddy

If you can't reach an agreement, consider bringing in a neutral third party or advisor to help mediate the discussion.

This is how a conversation with MagicBuddy looks like...

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