Equity is ownership of the company. It is everything that that the company is after all debts have been settled. Stock is the way this is represented. So the

Equity is ownership of the company. It is everything that that the company is after all debts have been settled. Stock is the way this is represented. So the percent of equity you have is the percent of stock you have. The only time it translates into money for you is when it is sold or dividends are declared. Generally, the percent of the equity you have is the percent of the cash you get. I would recommend talking with your cofounders about how you want to split it up. Remember that YC will take a small chunk of it as well. I'm sure if you're accepted there will be help with understanding it all. If you want a generic recommendation, take a chunk and set it aside then divide the reset evenly amongst the cofounders.