The Art of the Equity Split
Splitting equity is one of the most difficult and important conversations co-founders will have. A "fair" split isn't always 50/50; it should account for the risk, capital, and effort each person brings to the table.
Key Considerations
1. **Vesting**: Never give away equity upfront. Use a 4-year vesting schedule with a 1-year cliff.
2. **Contributions**: Ideas are worth little; execution is everything. Weight technical and sales roles heavily.
3. **Capital**: If a founder contributes significant initial capital, they should be compensated with additional equity or debt.