2. How will we divide the equity and responsibilities?
This is something that a good early-stage investor will ask about, and unwillingness or discomfort in discussing the split is usually a pink flag, suggesting the founding team has difficulty with contentious, emotional discussions. At the same time, it’s also worth discussing the possibility that you could reach a point where, for either business or personal reasons, a founder should step away from the company. How will you make that decision, and how will you handle the transition?There’s an understandable temptation to downplay or hide parts of your history that are embarrassing or worse.
Beyond the logistical questions, you want to understand their emotional style as well. Are they comfortable with open, honest debate? Capable of seriously considering other people’s perspectives? Can they have substantive disagreements without taking things personally or holding grudges?
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