Who owns what percent?
Friends start companies on handshakes and split regrets later. When money arrives, memory differs on who owns what.
1. The problem
Cofounders agree fifty-fifty over coffee, then one codes nights while the other networks weekends. Years later the split feels absurd but papers say equal. Lawyers cost thousands neither side has, and templates confuse more than they clarify. The hardest part is pricing unequal work before results exist. An idea might feel huge, yet execution carries the company. That uncertainty makes it hard to sign anything without sowing the first resentment.
“My cofounder and I split evenly and now I do all the work. I wish we had modeled contributions before signing anything.”
2. What exists
Carta, Pulley, AngelList templates and the Slicing Pie book guide founder equity, while most teams split evenly on vibes. Enterprise platforms price for funded startups with lawyers attached. A template might cover vesting, yet dynamic contribution tracking stays manual. There is little help with plain-language modeling of work, cash and ideas for pre-revenue teams.
3. The solution
The solution could be a plain-words equity modeler for first-time founders. It could weigh time, cash, ideas and risk into a suggested split with sliders both sides move together. It could explain vesting and cliffs without legalese and export a lawyer-ready draft. Each change could keep a history so talks stay factual. The goal would be signatures before incorporation instead of lawsuits after success.
FAQ
Common questions from people facing this problem.
How should cofounders split equity?
Weight time, cash and risk with vesting, not vibes; revisit at incorporation with numbers.
What is founder vesting?
Shares earned over years with a one-year cliff, so early exits keep things fair.
How to value a cofounder idea versus execution?
Ideas count little until executed; track committed hours and money instead.
Filed under: startups ideas
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