How to Split Equity Fairly
Equity splits are one of the most emotional and important early decisions in a startup. There is no perfect formula, but a weighted contribution model can help start the conversation objectively.
Common Weighting Factors
- Idea / Vision: Who came up with the core concept and direction?
- Time / Sweat Equity: Who is committing full-time vs part-time?
- Cash Invested: Who put in personal money at risk?
- Technical Expertise: Who is building the product or has deep domain knowledge?
- Business / Ops Expertise: Who is driving sales, operations, fundraising?
Vesting Basics
Standard founder vesting is 4 years with a 1-year cliff. This protects everyone if someone leaves early. Use the vesting preview to see how ownership evolves over time.
Important Reminder
This calculator is a starting point for discussion, not legal advice. Equity splits should always be formalized with a co-founder agreement and vesting schedule reviewed by a startup attorney.