For me, I would go with my “gut.”
So he wasn’t as talented as you guys – he still put his heart into it. He moved to Berlin whe. You asked and it sounds like he also did everything you asked of him.
It isn’t anyone’s fault that the project wasn’t a good fit for him.
You are giving him his money back because he isn’t going further into the project, and t sounds like you have made concessions already to raise his equity stake in lieu of investment because you recognize that his time commitment was valuable.
Realistically, the way I do these valuations though is I ask the person to figure out what their overall contribution to the project is in dollars, and based on the current valuation to the company, grant them Equity based in the equivalent of a salary at that amount. (My personal way of doing it – others do it differently.)
So, let’s say that your company is worth $200k right now (based on IP plus investment capital.)
Let’s also say you figure he’s put in around 80 hours of useful work – what percentage of the 200k does that equate to?
Originally Posted: https://www.quora.com/How-many-shares-should-we-give-to-our-leaving-co-founder
Originally Posted On: 2015-08-07