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Ask HN: How much of the equity pie do I split with my co-founder?
Hi guys, pardon me for being extremely new to the startup game, but I don't know how to approach this problem. I came up with an idea for a website and I got the ball rolling. I got the prototype out, and just as I was ready to start coding it, I happened to run into a trusted fraternity brother who works on the same frameworks as I do, and wants to help out. I really believe we have a solid business model, and we'll be looking for seed/Series A in the next 8-12 months. Since he'll be writing the first lines of code with me, I'm pretty sure that makes him a co-founder, but he didn't come up with any of the ideas and wasn't there for the genesis of the project, so it doesn't seem like a 50-50 split is in order. Some places I've seen its more like 25% equity for your first co-founder...what do you think seems appropriate? Obviously it's way too early to talk money, but I want to make sure this is handled before we talk money so there isn't a discrepancy 8 months down the line that he deserves more or I'm letting too much of my idea go to someone else. Thoughts?
- michael_dorfman 16y agoThe question I'd be asking is: if you were to fast forward now to the first funding round, and then look back on the project from inception to that date, what percentage of the value did each of you contribute? Put another way: giving 25% to your co-founder means that you get the first half of the company for the idea/prototype, and you split the second half (the development phase) 50/50. Now, is your idea/prototype really worth as much as all of the development?
- brudgers 16y agoWhat do you think is fair? What does your friend think is fair? If the split doesn't meet those expectations, don't bother splitting.