What happens when you start a company using Joel's Totally Fair Method to Divide Up The Ownership of Any Startup with two technical founders whose roles change over time?
Imagine the case where the company grows and new Developers are hired. One of the founders is happy to remain a Developer (no interest in management or business) while the other goes on to work on Management or Business Development. Initially they had a 50/50 split but suddenly things feel a little uncomfortable because the founder who moved up a notch feels that they are contributing more to the company's bottom line than the founder who remained a Developer.
I've always felt that shares should represent one's ongoing contribution to the company. I just never defined what form of contribution (money, time, vision, etc). Has anyone else run into this problem?
- What, if anything, should happen to the split of shares?
- What would you do differently if you could go back in time to the moment the company was being formed? Would you formulate a different agreement?