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.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.
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