Co-founders, team & legal

Co-founder agreements & equity

Split fairly, vest always, write it down.

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Should I use a dynamic equity split like Slicing Pie instead of fixed percentages? Dynamic models like Slicing Pie allocate equity based on actual contributions over time, which is genuinely fairer at the pre-funding grunt stage w... Advanced 2 resources → How much equity should I set aside for an ESOP pool for employees? Carve out roughly 10-15% for an option pool before you raise, so early hires get real ownership without diluting you unexpectedly later. In India, ... Advanced 2 resources → What is the difference between issuing shares to a co-founder and giving them stock options, and which should I use in an Indian private limited company? Co-founders should hold actual shares (subject to reverse vesting), not options. Options are for employees. In an Indian Pvt Ltd, you issue founder... Advanced 2 resources → How does founder equity actually get taxed in India, and will I owe tax the moment I get my shares or when I sell? If you subscribe to founder shares at par at incorporation, there is usually no tax event then, tax hits on sale as capital gains. The trap is gett... Advanced 3 resources → How do we handle deadlock when two co-founders own 50/50 and cannot agree on a major decision? A pure 50/50 split with no tiebreaker is a design flaw, not fairness. Build a deadlock mechanism into the shareholders agreement before you ever hi... Advanced 3 resources → What transfer restrictions should we put on founder shares so one co-founder cannot sell their stake to a random outsider? Lock founder shares down with a right of first refusal (the company and other founders get first dibs), plus a general transfer restriction requiri... Advanced 3 resources →
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