Which is the best cofounder equity split approach?

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When forming a startup with two or three founders, what factors should push us toward equal splits, role-and-commitment based splits, or a dynamic/delayed-slicing model? How should past contributions, future time commitment, salary trade-offs, vesting schedules, and potential investor expectations influence the choice? Are there practical frameworks or calculators founders use to document a fair split that reduces future disputes and remains attractive to hires and VCs?

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Jeremiah Scott 13 Aug 2025

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I think the easiest rule is: if you all bring equal risk, time and idea ownership, split equally. When one founder leaves day job, another stays part-time, or someone brings a big customer or IP, go role and commitment based. I like a hybrid: start with a simple split but add a dynamic clause for deferred salary and milestones. Use a 4 year vesting schedule with a 1 year cliff and document how unpaid salary converts to equity if not paid. I use the Slicing Pie idea for fairness and a simple spreadsheet to record hours, cash, IP and hires. Also get a lawyer to codify it so VCs see a clean cap table.
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