May 14, 2012

Founder Equity

There have been several articles written about founder equity recently, sparking the debate over whether or not founders should split equity equally. Given the fact that most if not all of the arguments on the subject revolve around hypothetical problems and anecdotal arguments, I am surprised to see so many people taking a stance on one side of the fence or the other.

If it is the founders that are most important to getting a startup off the ground, it follows that the founders' relationship is one of the most important determinants of success.

Founders equity plays a signficant role in defining that relationship. Healthy team chemistry necessitates checking your ego at the door, and how you split shares sets the stage.

Ultimately, you should do what's best and fair for your company. A startup is people, and thus equity should be determined based on your team's unique relationships, commitments, and circumstances.

There is no formula for people.