How should we negotiate equity splits in our startup?

How should we negotiate equity splits in our startup?

Negotiating equity splits can be tricky. It's important to consider each founder's contribution, skills, and the amount of time they will invest.

What factors should we consider when deciding on the split?

Key factors include initial investment, expertise, time commitment, and the roles each founder will play in the company.

Is there a standard formula for equity splits?

There's no one-size-fits-all formula, but many startups use a combination of equal splits and adjustments based on contributions.

How can we ensure that everyone feels satisfied with the agreement?

Open communication is crucial. Discuss expectations and be transparent about each person's contributions to foster trust.

What if we can't agree on the split?

If you can't reach an agreement, consider bringing in a neutral third party or advisor to help mediate the discussion.