The issue with this method is that it assumes that the investor model has to change too. VC's will attempt to have the right ownership over the lifetime of an investment eventually getting to around 20%. Some want 20% right away. The problem with granting so much equity to employees makes the rounds of funding required later difficult to match this ownership target.
Investors want founders with meaningful ownership of the business, a syndicate that owns enough to care, and employees happy too. That is where the model is driven from, and would require a change at the investor level for this to work.
Assuming 2 investors (40%) 2 founders (40%) that leaves only 20% remaining which does not fit the proposed changes.
Investors want founders with meaningful ownership of the business, a syndicate that owns enough to care, and employees happy too. That is where the model is driven from, and would require a change at the investor level for this to work.
Assuming 2 investors (40%) 2 founders (40%) that leaves only 20% remaining which does not fit the proposed changes.