How to Split Equity with Co-Founders
In recent months, I've fielded several calls from Dukies on the subject of "How to Split Equity with Co-Founders". IMHO, there is no "right answer" but the discussion can reveal a lot about your co-founders and, sometimes, your investors. Each of you should start by creating a summary of what you bring to the company including cash, IP including code, prototypes, patents or other fully developed ideas, and other critical knowledge or experience, relationships with customers & markets, relationships with investors and advisors, relevant experience, long hours invested to date, demonstrated leadership skills and so on. Keep in mind that co-founding is a long term relationship and this challenging topic is just one of the first of an endless series of shared decisions you'll encounter together. You may even discover in the course of the equity conversation that one of you is incompatible with the perspectives of the others which, while a painful realization...