Toolkit · Free
Founder Equity Starter Kit
No email, no sign-up. Just the few things worth settling before you split a company. When you’re ready, build your real cap table in the lesson.
Three common ways founders split
Equal split
50 / 50 (or 33 / 33 / 33). The default when risk, commitment and contribution are genuinely symmetric. Pair it with vesting so it tracks work done.
Weighted by risk
The founder who quit the job, put in the savings, or started months earlier carries more. Make the weights explicit — write down what each slice is for.
Idea ≠ equity
The idea is worth little; execution is everything. Resist large splits for "having the idea". Reward the years of work that follow.
ESOP rule of thumb
At seed in India, an employee option pool of roughly 8–12% is common. Investors usually want it created pre-money — so it dilutes the founders, not the incoming investor. Model it before the conversation, not during it.
Settle these before you sign
- Who is full-time, and from when?
- What happens to equity if a cofounder leaves in month four? (vesting + cliff)
- How big is the ESOP pool, and who does it dilute?
- Who has the final say when you disagree?