Founder Equity Split

Also called Equity Split

How founders divide ownership of the company among themselves. Can be equal or weighted by contribution, role, or timing, and is usually paired with vesting.

Why it matters

The equity split is a lasting decision that is painful to revisit, and a lopsided or resentment-breeding one can fracture a team. Talking it through openly and fairly early, with vesting to protect everyone, prevents future disputes.

For example

Two co-founders who both quit jobs and contribute equally settle on a 50-50 split with vesting, agreed openly early to avoid resentment later.

Worth your time

Co-Founder Agreement India: Equity, Vesting & IP Guide Vakilsearch · guide A practical, India-specific walkthrough of splitting equity, setting vesting, and assigning IP, the exact things a founders' agreement must nail.

Related terms

Co-Founder Vesting Founders' Agreement

Go deeper

See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.

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