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How should we split equity among co-founders?

An example of an AI chatbot conversation about co-founder equity distribution.

😀
You

How should we split equity among co-founders?

MagicBuddy
MagicBuddy

The equity split among co-founders can depend on various factors like contribution, experience, and roles. What are your thoughts?

😀
You

We have two co-founders, one with more experience and the other bringing in initial funding.

MagicBuddy
MagicBuddy

In that case, you might consider a split that reflects both the experience and the financial contribution. Have you thought about a 60-40 split?

😀
You

That sounds reasonable. What if we bring in a third co-founder later?

MagicBuddy
MagicBuddy

You could set aside a percentage of equity for future hires or co-founders. This is often called an 'equity pool.' How much do you think would be fair?

😀
You

Maybe 10% for future co-founders. Is that common?

MagicBuddy
MagicBuddy

Yes, it's quite common to reserve around 10-20% for future team members. It helps attract talent as you grow.

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