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ASK KOCHIE: How do you value cash v sweat in a business partnership?

- May 30, 2019 < 1 MIN READ
Your Money Your Life

Libby and David Koch – partners in life and business. 

 

Plenty of startups have co-founders who bring different skills to the business.

Sometimes it’s “sweat equity” – the sheer hard work required in the business to succeed, without pay, and for others, it’s the capital needed to get the business up and running: cash, which means you don’t have to chase seed funding or a series A to get cracking.

Flying Solo’s sat down with Pinstripe Media founder David Koch ask him how to calculate what each partner brings to the business after a member of Flying Solo’s Money forum asked what to do if they bought a business with a partner who was bringing cash to the deal while they were going to be doing most of the work.

Here’s what Kochie said about how to deal with it:

Cash versus equity partnerships

Cash versus equity: What’s the best way to manage a partnership when one partner brings all the cash? Lucy asks Sunrise host and Pinstripe Media founder, David Koch for his advice.

Posted by Flying Solo on Tuesday, May 28, 2019

This video was originally published on Flying Solo as “Help! How do we structure a business when one partner brings all the cash?” You can read and watch the original here.

  • David Koch is the founder and owner of Pinstripe Media, publishers of Startup Daily and Flying Solo. 

 

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