The document discusses the process of splitting equity among co-founders, emphasizing the importance of defining responsibilities and job duties early in the partnership. It suggests that equity distribution should typically be equitable, as this can drive motivation, and raises key questions to consider before deciding on the split. Ultimately, it highlights the necessity of aligning priorities and understanding each founder's long-term commitment and role in the company.

1. How To Split Equity
Among Co-Founders?
Equity is the securities that make up an entity; this ownership lets
a person know how much of the company they own. When a
company is formed, and you have a co-founder, a lot of things will
come up. To begin with, you would have to start with deciding who
would have what responsibilities and how to divide the job duties.
Other than that, you would have to face the decision where you
would need to distribute the equity in a startup; your company

2. Yes, it is true that more equity
means more motivation,
especially if you and your co-
founder(s) work full-time on your
startup. For that reason, it's much
better to split equity equally. It
doesn't have to be 50/50, it might
be 42 and 58, but you should split
at least on a similar level
Is Equity Split A
Good Idea?

3. Questions To Ask
Before Splitting Equity
01
Are there other founders
able to offer quality work?
02
Are their priorities the same
as organization vision?
03
How long will the person
stick around?

4. Questions To Ask
Before Splitting Equity
04
What role will they play in
the long run?
05
Should you split equity
50/50?