Negotiating Equity Splits at UpDown

Posted: 8 May 2012  

Noam Wasserman

University of Southern California - Lloyd Greif Center for Entrepreneurial Studies

Deepak K. Malhotra

Harvard Business School - Negotiation, Organizations & Markets Unit

Date Written: April 20, 2012

Abstract

Michael Reich is having severe doubts about how he split the equity with his co-founders two months ago, when they completed a one-page "November Agreement." Since then, Michael has found an angel investor and has worked non-stop on the business, while one co-founder was off enjoying the winter break with his family and the other worked on lucrative consulting contracts for other companies. Michael has just sent his co-founders a proposal that would re-allocate the equity within their founding team, and all three founders are getting ready to reopen a negotiation they thought had been finalized.

Suggested Citation

Wasserman, Noam and Malhotra, Deepak K., Negotiating Equity Splits at UpDown (April 20, 2012). Harvard Business School Entrepreneurial Management Case No. 812-701. Available at SSRN: https://ssrn.com/abstract=2053195

Noam Wasserman (Contact Author)

University of Southern California - Lloyd Greif Center for Entrepreneurial Studies ( email )

United States

Deepak K. Malhotra

Harvard Business School - Negotiation, Organizations & Markets Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Paper statistics

Abstract Views
808