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.
Equity Splits
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.
Why You Should You File an 83(b) Election
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.
Structuring Equity Splits to Mitigate Co-Founder Conflict
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.
Layering Value—A Different Way of Dividing Founder Equity
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.