Factors to consider when splitting startup equity (1)
Contribution. One of the most common factors to consider when splitting equity is the relative contribution of each founder, advisor, or employee. This can include things like the time and effort that each one puts into the company, the expertise they bring to the table, and any intellectual property they contribute.
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Because we don't think about how to distribute equity in a startup until is late and when it is complicated to change things.
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Factors to consider when splitting startup equity (3)
Future plans. Founders should also think about long-term goals and how equity splits may impact those plans. For example, if one founder plans to take on a full-time role with the company while the other intends to remain a passive investor, this may affect equity split.
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