Getting a co-founder at different stages of a startup: how to calculate equity at each stage?


2

If you're a solo founder and decide to add a co-founder at a later stage as you build the business, what should the equity be at these different stages:

  1. After building an MVP
  2. After getting a few initial users / customers
  3. Getting a larger number of users
  4. Turning the company profitable
  5. After raising a seed-level angel round

What would you say is fair equity % to give to a co-founder at each stage?

Co-Founder Solo Entrepreneur Equity

asked Mar 31 '14 at 11:43
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Emmitt Wallace
14 points

1 Answer


0

There are many factors at each stage that would affect the way equity is structured. There is no hard and fast rule by which you can decide until you reach that stage.

If you're just starting out, I would recommend reading Joel Spolsky's answer here: Forming a new software startup, how do I allocate ownership fairly?

answered Apr 1 '14 at 11:58
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Nishank Khanna
4,253 points

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Co-Founder Solo Entrepreneur Equity