How you divide equity reflects your values, directly impacts your co-founder relationship, and influences how your team and investors perceive your startup. Read more to learn methods for dividing equity that align with your values and can minimize conflict between founders.
Deciding how to allocate equity can be one of the leading sources of founder conflict. As startups mature, the percentage of founders who express unhappiness with their equity split increases by 2.5x. Learn the most common mistakes founders make when dividing equity and get tips on how you can avoid them.
If you're vesting equity shares, it's important to understand 83(b) elections. Learn why an 83(b) can save you—and your company—money and when you need to file.
Before you begin discussing how to divide equity, the smartest thing you can do is to build in mechanisms to make your agreement dynamic. Learn the benefits and drawbacks of common methods.
Lara Hodgson, co-founder and CEO of NOW Corporation, shares how she and her partners assign value to founder contributions as they change over time and allocate founder equity iteratively.