What are some of the incentive that you can give to the investors? Well, in some countries they might actually receive a tax break for investing in start-up. And sometimes you might want to offer the investors a board seat as an incentive. Now that is a very strategic move. Only give a board seat to someone who you think can really add value strategically. This will be someone who might be able to help you to open doors, expand your network, secure more customers. And remember, board seat is actually a very important role because it will affect your company direction. Now, of course sometimes you have no choice, but the investor actually demand for a board seat. And another thing that you need to be careful is when you start your company, you and your co-founders, how can you decide who owns how much? Should it be a simple division? So to split up the company according to the number of founders. Maybe the two of you will each get 50%, maybe there are four of you will each each get 25%. Is that the fairest way, is that the best way? You have to decide. But what I can tell you is, you have to consider the followings. Well, for example, who came up with the ideas first, whose idea was it? Who are going to work full time in this company, so who's committed? Who amounts the co-founders are actually going to put some of their own money into the company. And these are all the factors that would affect who owns how much. Now, you might even say who is going to give up their full time jobs and become a full time employee with or without salary when they work for this company? So here's how I would see this, right. I think at the beginning, the share should be divided according to who came up with the ideas, who's actually investing money now. For all other future commitments, which means some of you or all of you going to work full time, or most of you or all of you going to work without pay. I think that deserve more credit. So with the initial base of shares, I think whoever work full time without salary, even should get a lot of stock options. So in other words, you have a certain base of the division of shares among the co-founders and then they gain more shares by putting more of their effort. So these are the so-called sweat equity. You sweat for it, and you deserve to own more. So give the person who's working full time without pay the more stock option. I think it's only fair, but in terms of how much you going to get that's up to you, again. But a stock option would typically have a time that you have to execute and a conversion price. And not only that, you will also offer stock option to some of your early employees, or late employees even. Give them the incentive, stay loyal, stay longer with your company.
