Giving Away Startup Ownership: How Much is Too Much? [Infographic]

Startup Ownership

The curse of the entrepreneur: you have this great idea and it looks like it will do really well. The problem? You lack the capital and the skill to build it. What’s the solution? Giving Away Startup Ownership.

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Startup Ownership

The Foundation of a Successful Startup.

There are thousands of great startup ideas developing every single day. However, in a study by Statistic Brain, Startup Business Failure Rate by Industry, after five years the failure rate of U.S. companies was over 50%, and after 10 years-over 70%. By creating a stable foundation from the start, you will consistently increase your chances of success.

Be wise with who you choose to be your co-founders and partners– nearly 80% of partnerships fail annually. Do your research: what needs will your startup fulfill? Who is your target demographic? How saturated is the market and who are your competitors? You will need to address all of these questions if you want to succeed. Finally, understand Due Diligence and begin collecting your documents from the beginning. This information will be essential as your startup begins the Funding Life Cycle and you start pitching to investors.

Infographic edited by Rebecca Cox

Dave Clark