How to Determine Equity Distribution Among Founders?
Determining equity distribution among founders can be complex. Several factors should be considered:
Contributions: Assess the contributions of each founder in terms of capital investment, expertise, and time. Roles and Responsibilities: Clearly define the roles and responsibilities of each founder. This can help in aligning the equity distribution with the value each founder brings to the table. Future Commitment: Consider the long-term commitment of each founder to the venture. Founders who plan to stay for the long haul may deserve a higher equity stake.