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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly. Sometimes co-founders put off the equity split question for some time.

Equity 315
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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 255
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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

As a result, one of the trickier things co-founders tackle is determining the equity split amongst the founding group of individuals. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.

Cofounder 173
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Dear elizy: How should I split equity with my co-founders?  And how will that affect raising a seed round?

Hippoland

Ada is my professor, and we are using her lab, and the company is based on her research, though the IP is assigned to the company. We are trying to decide how much equity to allocate to each person. I would like to split the equity equally, since it seems only fair. But, we’re going to be doing all the work!

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Bad Notes on Venture Capital

Both Sides of the Table

These are all real conversations. of the time I have no vested interest in having the debate. What if when you have that conversation you don’t agree? “But lawyers will charge much more for equity.” Try doing THAT with equity. I have them all the time. I’m bored of it. And so forth.

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Series Seed Financing Documents

www.seriesseed.com

You can follow this conversation by subscribing to the comment feed for this post. We went with equity because ivestors would prefer to get equity for the following reasons: 1. One of the reasons notes have become so popular is that the equity documents were too expensive. Posted by: toby | 03/01/2010 at 09:52 PM.

Finance 40
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If I Launched a Startup

The Startup Lawyer

(7) Founders Equity Split: Depends on the Team, But Quickly and After the Awkward & Difficult Conversations. (8) 8) Vest Founders Shares?: 9) Vesting Schedule for Founders Shares: 4 years with a One Year Cliff. (10) 10) Consideration for Founders Shares: Cash & IP. (11) Hell Yes. (9) Raising Capital. (1)