How to Split the Startup Founder Equity Pie

http://thestartuplawyer.com/incorporation/how-to-split-the-startup-founder-equity-pie

by fusionman • 16 years ago

6 2 16 years ago

char• 16 years ago

I actually believe the opposite: that founders should split equity equally.

Even taking into account all of the factors the author lists (ideas, cash, sacrifice, etc.), the bottom line is that each founder needs to be completely and equally dedicated to the project. None of those initial contributions matters in the long run and therefore shouldn't be used to allocate initial equity.

Giving certain founders a smaller share results in a lack of motivation, and a feeling that the project isn't exactly 'theirs'. If some founders are not as dedicated as others, then they probably aren't going to make very good founders anyway. Find new ones.

The one thing I agreed with was that founders should always vest.

DenisM• 16 years ago

Timeless piece: Founder Pie Calculator.

http://www.andrew.cmu.edu/user/fd0n/35%20Founders%27%20Pie%2...

How to Split the Startup Founder Equity Pie

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