Equity split is the most important conversation you'll have with your co-founder. Use this model to create a data-driven starting point based on contribution, commitment, and capital.
Principles of Fair Equity Split
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Idea Contribution
Who conceived the business idea? First-mover credit is real but should be weighted modestly — execution matters more.
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Technical Build
Is one founder building the entire product solo? Engineering value deserves significant weight in early-stage startups.
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Time Commitment
Full-time founders take on personal financial risk. Part-time involvement should reflect in a proportionally lower stake.
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Capital Investment
Founder funding converts to equity like any investor. Agree on a pre-money valuation before doing this calculation.
Equity Split FAQs
Equal splits (50/50) are common and avoid power imbalances, but only work when contributions are genuinely equal. Unequal splits should be discussed openly using an objective framework like this calculator. Many successful Indian startups (CRED, Zepto, Razorpay) have unequal but fair splits with clearly assigned decision-making authority.
Vesting means your equity is earned over time (typically 4 years with a 1-year cliff). If a co-founder leaves in year 1, they shouldn't walk away with 40% of the company. Vesting protects all founders. Always include it in the co-founder agreement before incorporating.
A full-time technical co-founder who is solely building the product typically gets 25–45% depending on stage. If joining pre-revenue and pre-investment, 35–50% is common. Post-seed/Series A technical hires are not co-founders and should be compensated via ESOPs (typically 0.5–5%).
Yes — always before you start working together and before incorporating. A good co-founder agreement covers: equity ownership, vesting schedules, IP assignment, roles, decision-making authority, salary expectations, and exit/buyout clauses. Cost: ₹8,000–₹25,000 with a startup-focused commercial lawyer.
🤝 Equity Split Calculator
Answer 6 questions about your co-founding relationship
