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Ask HN: How do you split equity between founders
If you have 2 founders, do each one typically get 50%? What if a third joins afterward, how do you redistribute? What if an investor invests money later, do each founder give up equal amount of shares? I know it all depends on the particular case, I want to know what it is like typically in the startup scene. We have a couple friends but we have no experience on these things. Do we need to get a lawyer and sign agreement (that sounds odd between friends)? What if one of the founder "fade out" for whatever reason?
- vectran 14y agoThis is a very difficult topic and there are plenty of thoughts and blog posts available online. The need for a lawyer probably depends on whether you intend to raise capital or just see it as a short term project? For bringing in new founders you should look at some sort of vesting agreement to vest founders over time. For general equity-split, the calculator below is thought provoking: http://foundrs.com/ http://foundrs.com/ However generally with two founders a 50-50 split is best as both of you need to be 100% committed for it to work out.
- dear 14y agoThanks for your reply! What do you mean by "vest founders over time"? We are not intended to actively looking to raise capital (though we don't mind it) but neither do we see it as a short term project. We want to see growth of revenue and profit.