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Founder Resources

Founder Equity Calculator

Calculate fair equity distribution among co-founders based on contribution, experience, investment, and commitment. Make informed decisions for your startup's ownership structure.

Calculator Settings

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Equity Distribution

Founder 1

36.7%

CEO

3,674,541 shares

4 years with a 1-year cliff

Founder 2

35.3%

CTO

3,530,184 shares

4 years with a 1-year cliff

Founder 3

28.0%

COO

2,795,275 shares

4 years with a 1-year cliff

Total Distribution: 100.0%

Total shares allocated: 10,000,000 of 10,000,000

These calculations are estimates. Consult with legal professionals for formal equity agreements.

Founders (3)

Founder 1
Founder 2
Founder 3

How the split is calculated

  • Two methods. Contribution only divides each founder's work-contribution value by the group total. Balanced scoring gives 50% weight to normalized work contribution, 20% to experience (years divided by 10, capped at 1), 20% to normalized investment, and 10% to commitment (1 for full-time, 0.7 for part-time).
  • Each score becomes a target percentage of the total. Whole shares are apportioned with the largest-remainder method: shares are first rounded down, then each leftover share goes to the largest fractional remainder, breaking ties by founder order, so the distributed shares always sum to the requested total. The percentage shown is the ideal target; the share count is what each founder actually receives.
  • The result suggests a starting split for discussion. It does not value legal ownership or decide it — confirm any agreement with legal counsel.

Important Considerations

  • Consider vesting schedules (typically 4 years with 1-year cliff)
  • Reserve 10-20% equity for employee stock option pool
  • Account for future funding rounds and dilution
  • Get legal documentation for all equity agreements
  • Regular equity reviews as the company evolves

Track Your Equity

Use Beancount.io to track your startup's equity, cap table, and financial records with precision.

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