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Co-Founder Equity Split Calculator

Provides a logical framework and recommended equity split percentages for co-founders based on contribution and risk.

Use Case

Use during the early founding stages before signing formal incorporation documents to prevent future equity disputes.

AI Prompt

Act as an experienced startup attorney and incubator director. Help us determine a fair, performance-aligned equity split. Here are the profiles of the co-founders: [Insert Co-founder 1 details: role, cash contribution, intellectual property ownership, full-time/part-time commitment, and specialized skills] and [Insert Co-founder 2 details, and any others]. Evaluate their past, current, and future contributions. Recommend an equity split percentage based on a dynamic allocation model. Suggest a robust vesting schedule (e.g., cliffs, acceleration clauses) and explain how to structure key-man clauses to protect the company if a founder leaves early.

How to Use

1Describe each founder's input, dedication level, domain expertise, and capital contributed.
2Analyze the recommended percentage splits and vesting schedule structures.
3Use the results as a baseline for drafting your legal co-founder agreement.

Example Output

Based on the developer building the full product and the business lead contributing initial capital, we recommend a forty-five to fifty-five split. A standard four-year vesting schedule with a one-year cliff is essential to ensure long-term alignment and protect the company.

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