How to Divide Up Your Company's Equity


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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.

Equity Founders Canon

asked Jul 22 '11 at 22:25
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Jarie Bolander
11,421 points

1 Answer


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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.

Lastly, looking through the questions tagged 'Equity' is often very helpful.

If you want a handy equity calculator, one of our moderators, Alain, has one. You can find it here Feel free to add any additional links to questions or answers that expand on the topic of equity.

answered Jul 25 '11 at 11:35
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Jarie Bolander
11,421 points
  • This is awesome Jarie! Thanks again! I converted it to a wiki so that others can add to it - we'll have to keep an eye on it. – Zuly Gonzalez 8 years ago
  • Thanks and good call on the wiki entry -- I forgot about that. – Jarie Bolander 8 years ago
  • You can use my co-founder equity calculator, people have been very positive about it giving good results http://foundrs.com/calculator/index.phpAlain Raynaud 8 years ago
  • Cool answer by referance – Soner Gönül 8 years ago

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Equity Founders Canon