Determining proportional ownership typically involves several factors including financial investment, time and effort, intellectual property, and strategic contributions. Here are some common methods:
Financial Investment: Contributors who invest capital receive equity proportional to their investment. Time and Effort: Founders who dedicate significant time and effort may receive equity to reflect their contributions. Intellectual Property: If a founder brings proprietary technology or valuable intellectual property, this can be factored into their share of ownership. Strategic Contributions: Key strategic inputs, such as industry connections or market knowledge, can also influence ownership stakes.