Ask HN: Case studies of equity splits between cofounders

https://news.ycombinator.com/item?id=762512

by newy • 17 years ago

22 5 17 years ago

news.ycombinator.com

I've seen the "dividing the pie" calculator, but I'm more curious as to actual examples of equity splits between cofounders. Below's one link. Any more out htere?

http://www.startup-book.com/2008/10/30/equity-split-in-start-ups/

On a related note, has the initial equity split between Zuckerberg and his cofounders ever been revealed? I know that he had assembled a team of 5, just wondering what the other guys (all of whom I believe have since departed FB) ended up with.

siong1987• 17 years ago

The best equity split is: everyone in your startup is happy. And, I don't think that there is any formula out there you can use.

davidu• 17 years ago

It's my understanding that they are considered co-founders in title only, not in equity or role or responsibility.

metachris• 17 years ago

a really good idea i've read on HN was that:

If you are 3 cofounders, take 10% each and divide the other 70% according to each participants activity over the next 3 or 5 years.

The distribution system has to be defined before, but in general this sounds like a great way to split up and staying away from a lot of troubles and possible conflict points between the founders.

zngtk4• 17 years ago

This is an interesting idea. The obvious question is how do you measure activity -- this is one of the things that often causes disagreements (e.g. different cofounders all thinking that they contributed the most).

zipstudio• 17 years ago

I prefer equal splits whenever possible. This allows discussions to be meritocratic and not power based.

Ask HN: Case studies of equity splits between cofounders

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