We get a lot of questions about dividing equity and for good reason. Dividing up your startup's equity creates a lot of heart burn for all of us. It's a tremendously stressful affair if you have never done it before.
The answer below compiles some of the best questions and answers related to equity.
Joel Spolsky has a wonderful mantra on equity:
Fairness, and the perception of fairness, is much more valuable than owning a large stake. Joel's equity dividing answer to this question offers what we feel is a comprehensive answer to this nagging equity question.
If you find yourself wanting to ask an equity dividing question, please read Joel's answer first before posing the question. It's chock full of useful information and has a wonderful example to guide you through the process.
Additional Equity Questions and Answers
If Joel's answer does not answer your equity dividing questions, then take a look at a couple more questions that dive into different aspects of equity, founders and working for stock.