One of the most complex issues for a start-up is the distribution and management of founders shares. The founders matrix helps to streamline the discussions. There are three deal parameters that should be discussed with all founders on a regular basis during the idea stage till incorporation:
1. The number of hours that every founder invests. 2. The assets that are invested (concept idea, domain name, hardware, software etc) 3. The amount of money each founder invests.
These three parameters influence the stake every founder can claim in the startup. During the process from idea to incorporation the deal parameters must be iterated on a regular basis. Hence all founders feel their input is valued properly resulting in a certain amount of founder shares. Keep the discussion open and stay reasonable, you all have a responsibility to bring the start-up to the next level.