Equity is the right that shareholders enjoy based on their shareholder qualifications to obtain economic benefits from the company and participate in the company's operation and management.

First, equity is divided into two categories: capital equity part and operation and management equity part, that is, economic rights and political rights.

First, determine the equity of these two parts clearly, and distribute them not from the perspective of people, but from the perspective of these two categories.

The core of equity allocation is to make each founder feel reasonable and fair in the process of allocation and discussion, so that he or she may even forget about the allocation afterwards and concentrate on building the company.

Principle: The acquisition period, exit mechanism, and repurchase rights of the founding partners are the complete management of equity. The acquisition, exit, and repurchase of equity must be agreed in advance to avoid unnecessary disputes in the future.

Extended information: An incentive system that allows shareholders’ equity to adjust to a certain extent as their personal performance changes during the entrepreneurial process.

This system is neutral, so the distribution ratio of operating equity is also divided according to responsibilities and positions, rather than according to people.

The most basic thing about equity allocation is that there is no need to be embarrassed to discuss it in detail. If equity is not discussed well, various problems will inevitably occur during the entrepreneurial process.

Let the equity be divided not according to people, but according to objective funds, responsibilities, positions, creativity, etc., which can try to avoid the problems caused by arbitrary allocation methods.