Start-up Company Equity Structure Design
When it comes to entrepreneurship, we have to mention the topic of equity structure. Because it clarifies the rights, responsibilities and interests of the founders. A reasonable shareholding structure is conducive to the stability of a startup company because it fundamentally affects the control of the company. At the same time, a reasonable equity structure is also beneficial to the company's development, because it is related to the company's financing and access to the capital market. What are the important principles for designing a shareholding structure? Which companies have failed because of unreasonable shareholding structures? What other companies have achieved their brilliance today because of a reasonable shareholding structure? In this episode of our program, we will discuss these topics with you.
Guest: Liu Xiaoxiao
Hosts: David Gao, Vindy, Sean Wang
Editing: Wang Libing
Summary of this issue:
00:01:52 Guest introduction: Liu Xiaoxiao - Silicon Valley corporate lawyer
00:03:40 Equity allocation is the first issue for startups to consider
00:04:05 The taboo of equity allocation: equal share
00:06:20 Apple's losses in equity sharing
00:09:46 Google is a special case of successful equity sharing
00:11:40 Equity split looks simple, but it is actually the most difficult structure to control
00:12:45 Aiduo VCD's shareholding dilution problem: the minority shareholders who joined later can control the decision
00:15:30 Real time
00:19:58 Tudou missed the opportunity to go public: the equal division of marital property is also a major hidden danger
00:25:57 How should the equity be divided? Look at the irreplaceability of the founder
00:26:45 Specific numbers: the more biased, the better
00:28:22 Differences in equity allocation between China and the US
00:29:08 Success Stories: Microsoft, Facebook
00:33:02 Xiaomi and Luo Jisi: Lei Jun and Luo Pang's shareholding far exceeds the second largest shareholder
00:34:55 Haidilao: A typical example of the success of updating the shareholding structure
00:39:05 Investors value the founder's co-working experience rather than a strong individual
The show was released by the Silicon Valley tech startup channel "Avocado Toast"
