OLNS#15 – Founder Teams in German Start-ups – Team Size and Composition / Equity Splits / Empirical Data

German version  

The composition of a founder team and the way equity is split can have far-reaching implications for the success of a start-up. A well-balanced team can drive innovation, attract investors, and navigate the inevitable challenges that come with building a business. Conversely, an unbalanced team or a contentious equity split can lead to disputes, distractions, and even the downfall of a promising venture.

In this Guide, we will share general considerations and what we would consider best practices on how to think about solo founders versus founding teams, team composition, and how to approach the difficult question of the "right" equity split.

We will also hear from experienced investors at venture capital powerhouses, who will share their insights on what makes a strong founder team that has a shot at building a great company.

We're excited to augment these qualitative considerations with the results of the OLNS Founder Equity Study 2025, a unique empirical study of more than 2,100 German start-ups that were incorporated between 2019 and 2024 and have received some form of angel funding, corporate venture capital, or institutional venture capital. 

OLNS#15:

• provides practical guidance on team size as well as team composition and why the right combination is considered crucial by investors

• explains why the equity split should be intentional and future-focused and highlights some aspects that help in finding the right equity allocation

• gives insights on managing team dynamics and founder transitions in the early days and beyond

• includes specific considerations for IP-centric university spin-offs

• provides expert interviews with leading venture capital investors sharing their perspectives on the crucial decisions on team composition and equity split

• presents the empirical results of an analysis of more than 2,100 German start-ups, including detailed data and sector-specific breakdowns as well as a comparative analysis with U.S. start-up ecosystem data.

In preparing OLNS#15, our cross-functional Orrick team again drew on experience representing more than 4,500 venture-backed companies and 100+ unicorns as well as the most active funds, corporate venture investors and public tech companies worldwide. Founded in the Bay Area, Orrick is one of the world’s leading technology law firms and advises on more venture transactions in Europe than any other law firm for nine consecutive years (PitchBook, FY 2024).