How to split equity between cofounders

To split equity between cofounders fairly, rate each founder across the things that actually drive the company's value — idea, commitment, capital at risk, expertise, and ongoing responsibility — and let the split fall out of that, rather than defaulting to a gut-feel 50/50. Then put every founder's shares on a vesting schedule, so equity reflects who actually shows up over the years, not who was in the room on day one.

1. Why an even split feels fair but often isn't

A 50/50 split is the path of least resistance because it avoids an awkward conversation. The problem is it bakes in an assumption — that every founder contributes equally for the whole journey — that's almost never true. When one founder ends up doing far more, the resentment from a too-even split is one of the most common ways early teams blow up.

The goal isn't to nickel-and-dime your cofounder. It's to have the honest conversation now, while you're aligned and friendly, instead of two years in when the gap in contribution is obvious and the stakes are high. A split you can both defend out loud beats one you quietly resent.

2. Rate each founder on what drives value

Score each founder across the factors that genuinely move the company: who had the idea and early traction, who's full-time versus moonlighting, who's putting in capital, the expertise each brings, and who carries ongoing responsibility for the hardest parts. Weight commitment and responsibility heavily — future work matters far more than the original idea, which on its own is worth little.

This is the Founders' Pie approach: make the factors explicit, rate everyone honestly, and let the percentages fall out of the numbers. It won't be perfectly precise, but a transparent method you both agreed to is far more durable than a number you pulled from the air.

3. Vest everything, no exceptions

Whatever split you land on, put every founder's equity on a vesting schedule — the standard is four years with a one-year cliff. Vesting means you earn your shares over time by staying and contributing, rather than owning them outright on day one.

This is the single most important protection for an early team. If a cofounder leaves after six months, vesting means they don't walk away with a huge chunk of the company you then spend years building. Agree it before you start — it's nearly impossible to introduce fairly once someone's already unhappy.

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