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Equity Matrix

1 resource from Equity Matrix we point founders to, and the questions each answers.

📄 Article
✓ Link checked Free Intermediate

Why we picked it Most equity guides assume two people starting on day one. This one is built for exactly your situation: you started solo and are adding someone late. It gives real ranges anchored to how far you have already taken it (idea stage 40 to 49 percent, prototype 25 to 40, launched-no-revenue 15 to 30, revenue 10 to 25), so a late joiner earns less because you carried the risk. It walks the vesting math (four years, one-year cliff, you start partially vested since you already put in the work, they vest from zero), and it makes the case for a written founder agreement bluntly: of equity disputes that went unresolved, nearly every one lacked a written agreement.

How to Bring on a Co-Founder After Starting

From Equity Matrix by Sebastian Broways ~15 min read

  • The further along the business is when they join, the less equity they should get; you already absorbed the early risk
  • Standard vesting is four years with a one-year cliff, and you can start partially vested while they vest from zero
  • Put the split, roles, departure terms, and IP in a signed founder agreement; missing paperwork is where disputes fester
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