Founder’s Pocket Guide: Founder Equity Splits
By 1×1 Media
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This guide provides a framework and process to help startup founders answer this common question.
In detail, this Founder’s Pocket Guide walks entrepreneurs though the following elements:
- Take The Founder Test to make sure everybody deserves founder status
- Review the case for splitting your founder equity into equal parts
- Use the Equity Split Scorecard as a fair method to allocate more equity to highly skilled cofounders
- Solve common equity problems using founder vesting structures
- Answer common equity split questions like IP and founder-investors
Note that this guide does not go into how to use equity to attract employees or using equity to pay service providers, advisors, development companies, or other contractors. This guide focuses solely on the best practices of deciding the equity ownership split between the founders of a startup venture.