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by JohnFen
1066 days ago
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This is just me, but my personal policy is that all splits like this have to be equal. With two people, 50-50. If one person isn't contributing (or expected to contribute) enough to make that acceptable, that person shouldn't be a partner. The reason for this policy is that I've seen far too many companies go under because partners start fighting about things like who contributed more and so deserves the larger share. That's utter poison to a partnership (particularly if a partner is a friend, which is a whole danger zone all by itself) and business. Better just to say "we split everything equally" to avoid fights in the future when circumstances change. I am not suggesting this is the best way to handle it. It's just the way that I've arrived at, and it's worked very well for me for decades. |
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It has personally been easier for me when looking for a co-founder and thinking about equity split to realize whatever is being built is worthless today and is likely worthless tomorrow, and spending time caring about equity for a worthless product gets in the way of creating any sort of value.