Equity Allocation Approaches  - Lara O'Connor Hodgson on Aligning Equity Splits to What You Value
Channel: Arthur Rock Center for Entrepreneurship
Date: 2021-05-14

Before Dividing Equity, Define What You Value

Before you can decide how to divide equity, you must agree on what you value, as individuals and as a company. Lara Hodgson, who co-founded Nourish (2009) and NOW Corporation (2010), notes, the first challenge is deciding with your partners, “what are you even valuing? It’s hard to say, ‘what is the value of the idea?’ Because there isn’t a value to it.”