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How to calculate the equity split between co-founders in a startup

The Next Web

George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. There are a lot of variables to go into calculating a fair equity split a startup team. So, a fair split, would be closer to 60/40 in favor of the funding founder, when diluted for the cash.

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Building a High-Tech Startup Team

Business Plan Blog

Be sure to leave plenty of equity for investors. You will likely need to raise more rounds of capital than you originally anticipated. Having too many co-founders will only lead to your eventual dilution. This leaves the CTO / Senior Architect to focus on product development and managing the recently hired engineers.