Raising money
Co-founder equity split
A co-founder equity split is how the founders divide ownership of the company between them, usually agreed when the company is set up.
Also called founder equity split, equity split, co founder equity
Looking this up for a class, a job, or something you want to build? If it is the last one, nommi reads your idea before you spend months on it.
There is no standard split. Founders weigh who had the idea, who works full time, who brings money or skills, and who will carry the most work ahead. Founder shares usually vest over time, so a founder who leaves early keeps only part of them. The split goes on the cap table and is hard to change later.
This is not legal or tax advice, check with a lawyer or accountant.
When this shows up
Example, not a real founder: two friends split ownership evenly over coffee and sign nothing. Months later one stops working on the company but still owns half, and every investor who reads the cap table asks why.
What to do next
Before writing any code together, agree in writing on the split, the vesting schedule, and what happens to unvested shares if someone leaves. Have a lawyer turn it into the company's documents.