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Book notes: The economy class founder

Book notes: The economy class founder

26/04/24

I don’t read book summaries. Neither should you. The following are mostly notes to myself, and are my interpretations.

Got this recommendation from Pallav. Very authentic journey narrative of Manasij Ganguli. Definitely recommend. I found a nice little framework with which Manasij figured the co-founders cap table. Apart from learning from his journey, there's this framework that I wanted to keep documented. Here's how it goes:

Say A and B create a start-up and they try to determine the shareholding pattern for themselves. Let's say they decide that their start-up's biggest business imperatives are: Investment, Sales, Technology, Marketing, Finance, Operations and Administration. This is based on how A and B collectively 'feel' about what needs to exist in their business for it to become successful.

Draw a grid with these and assign weights on a scale of 5, to each of these imperatives based on the collective experience. It could be completely different for different businesses.

Now, let's put person A into the grid and estimate what areas A will contribute on a scale of 5. This way you can estimate the weighted contributions of each team member across all the business imperatives and define their value in the business as one final numerical score.

If A's total score = 75 and B's total score = 60. Then, A should own 75/(75+60) = 55.5% and B should own 60/(75+60) = 45.5%. Example grid below.


© Copyright 2023, I guess.

© Copyright 2023, I guess.