How to Handle Co-founder Equity Splits

Discuss equity before you've built significant value together. The longer you wait, the messier it gets. Address it head-on when everyone's contribution is still mostly potential.

Evaluate: who had the original idea, who's going full-time first, relevant experience and skills, cash contribution, existing relationships with customers, and expected future contribution. No single factor should dominate.

Equal splits (50/50 or 33/33/33) work when founders have similar commitment and contribution. Unequal splits make sense when there are clear differences in experience, contribution, or commitment level.

Standard vesting is 4 years with a 1-year cliff. This protects everyone: if a co-founder leaves early, they don't walk away with a huge chunk of the company. No exceptions.

Create a founders' agreement that covers: equity percentages, vesting schedules, roles, IP assignment, and what happens if someone leaves. Use a lawyer or standard templates from Clerky or Stripe Atlas.

Discuss upfront: What if one founder leaves? What if we disagree on direction? What if we need to bring in new partners? Having frameworks for these situations prevents future conflict.