Share Equity Between Founders In Queens
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FAQ
Google's co-founders, Larry Page and Sergey Brin, went 50%-50%. Which model should you follow? It depends. You should weigh a variety of factors including circumstances, experience, contributions and roles.
Equity allocation to co-founding team members should reflect a reward for the value they're expected to contribute. If the expected contributions are fairly equal, then the initial equity should be allocated relatively equally (for example, 51% and 49%).
When your startup is in the initial stages, the founder or the co-founders usually own it entirely, typically in a 50/50 split, or 60/40, depending on various conditions. As you grow, equity is distributed among those who contributed to fund your startup, give you advise, or develop your product/service offerings.
The exact numbers vary, but the typical equity grants for founding engineers are in the range of 0.5% to 2%. You can get a sense for it if you scan YC's job board. Getting 1% is typical, and it comes with a one year cliff and a four year vest.
The founders of Apple had a 45–45–10 split between its three founders Steve Jobs, Steve Wozniak, and Ron Wayne respectively.
In summary, 1% equity can be a good offer if the startup has strong potential, your role is significant, and the overall compensation package is competitive. However, it could also be seen as low depending on the context. It's essential to assess all these factors before making a decision.
If you started as a solo-founder and have made progress on the business (especially if you've already raised), you should consider a something along the line of an 80/20 split of founder shares. In fact, the range I'm seeing is anywhere from 5-20% for the 2nd co-founder.
If you started as a solo-founder and have made progress on the business (especially if you've already raised), you should consider a something along the line of an 80/20 split of founder shares. In fact, the range I'm seeing is anywhere from 5-20% for the 2nd co-founder.
To establish a starting point for equity grants, we recommend using 0.75% as the “baseline grant” for your first hire. This percentage represents the equity grant for a technical, mid-level employee and serves as a reference point for your future calculations.
Generally, the choices are to either simply go for an equal equity divide or opt for a weighted split, however there is no definitive right way to proceed. Often it may depends on factors like the level of commitment, expertize or business experience etc of the parties involved.
