tech-company, founderI have incorporated a company recently with my friend.
I have 90% equity and He has 10%.
Since we both founded the company, I guess we both have the same title “Co-Founder”.
But when I talk with my other friend who has a 1 year old company, he was telling me that “Founder” title applies for the person who came up with the idea.
Although I came up with the idea, I feel that it doesn’t make any sense.
So can some one clear my doubts?
PS: We are going to print business cards. That’s why I’m asking this question
All co-founders are founders. Which is to say that "Name, Founder" might mean a founder or the founder of a company; the use of co-founder removes this ambiguity.
Some people say they're "the founder" when they really "a founder" (aka co-founder), which in my opinion, depending on the context and awareness of the other co-founders might make sense.
Neither the percent of equity a party holds, nor their role, are not related to being labeled a founder.
All that matters is that all the "founders" agree they're founders, and sometimes this doesn't even matter; I've seen people who call themselves a founder and the other founders claim they're not.
Lastly, I know of lots of "founders" that don't like the title, and don't use it.
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Neither “Founder” nor “Co-founder” is a term with a legal definition, so the correct answer is - whatever you want it to be.
Most ventures I’ve known that have been even modestly successful, and where the “co-founder” term has been used, have included at least one person who wasn’t involved from the get-go.
If the term has a significance, it’s usually something to do with “founder shares.” Again, that’s not a legal thing, it’s just a term. Sometimes it is just a boundary - there’s a single class of shares, and a fixed (over some period of time) number available for everyone who’s eligible but not classed as a founder. And sometimes it’s another class of shares, only available to certain people. The term “founder” is immaterial, just fashionable.
That’s different than the term “Director” in many places, where there is a legal definition. Though even then, few jurisdictions prohibit someone being given the title Director, when they’re not a member of the Board of Directors. You can think of lots of examples of titles that have been or are being used to convey an appearance of status - Senior Vice President used to be a great favourite.
So if you want to call everyone co-founders, or nobody, or just the people who were there by a certain date, or all the senior team as of the first funding, or whatever - it really is up to you. However you decide to use the term, someone out there will tell you you’re wrong, just like not everyone is going to compliment you on your dress sense. It matters just as little and just as much.
Founder
Business Models & Organizational Structure >Organizations
“Who Is Considered a Founder of an Organization?” by Sophie Johnson, Demand Media
The founders of an organization are those who bring that organization into existence. Founders take an active interest in getting the enterprise off the ground, finding and investing resources to form the company and helping it succeed.
When two or more people establish a company, they are known as co-founders and, since they launch new companies, founders are also entrepreneurs.
An idea is just a vision, and you are the owner of just that, which means you are a visionary, until that idea has been brought into existence.
Co-founders are the people involved in the initial launch of a startup company. Anyone can be a co-founder, and a co-founder doesn’t necessarily have to have been there from the inception, although that is usually the case. It is also not necessarily all of the people who were there on day one. Being a co-founder depends on a wide variety of issues, and not all people agree on these, but in most cases the co-founders are the ones who took the risk and saw the company to some pivotal stage of growth.
Co-founders are often entrepreneurs, engineers, financiers, programmers, designers, layers and others involved in the inception of a new, often high-tech, company. I believe that the right to call oneself a co-founder is governed by the leader of the team at the pivotal time in the company’s history. This is usually the C.E.O. or Chairman, but it could also be the creative talent behind the venture. A co-founder must have taken the risk of the business failing in order to take credit for the success. That means that they may have put up significant money or time for the project. People who keep their jobs while helping a startup may not qualify to be a co-founder, even if they contribute and were part of the inception team, as they just aren’t taking the risk or devoting substantially all their time. Some people’s contributions just might not be significant enough to warrant the right to claim the title of co-founder
There doesn’t seem to be a formal or even a legal definition of what makes someone a co-founder. There are even lawsuits over people making the claim. Tesla, the electric car company, is one such case where there is a dispute over who the founders are. A pre-incorporation agreement or shareholder’s agreement can be used to specify who founders are, but these are often executed very early on in the company’s formation. To be a true founder or co-founder, one must stay through the risky and difficult times, not just sign a document.
It matters because being the co-founder of a successful startup has real advantages. Aside from bragging rights and admiration of others, a founder or co-founder might be selected to participate in other promising ventures because of their experience. Few companies make through the early stages to become something that people want to be associated so closely with. This experience is extremely valuable and sought after, so being a co-founder just might translate into dollars in the future.
Founder is one who started and in your case your both teammates are founders and can use Word founder and one who joins later to enhance your startup is known to be co-founder
Example : check Apple company who founded and who are co-founded
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