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SA

Sam Altman

03/18/17

@ Y Combinator

Co-founders should decide on the equity split early in their partnership, ideally soon after they start working together, and it should be near equal.

Video

YC

Team and Execution with Sam Altman (How to Start a Startup 2014: Lecture 2)

@ Y Combinator

Team and Execution with Sam Altman (How to Start a Startup 2014: Lecture 2)

03/18/17

Related Takeaways

HT

Harj Taggar

03/26/21

@ Y Combinator

When deciding on equity, start with a 50-50 split, as both co-founders are likely to contribute equally at the beginning stages of the startup.

HT

Harj Taggar

09/27/24

@ Y Combinator

It's advisable to split equity equally between co-founders to ensure both feel equally invested in the startup's success.

KM

Kat Mañalac

05/24/19

@ Y Combinator

Ideally, co-founders should have developed the idea together and worked on building the product from the start, but even if one co-founder joined later, an even equity split is still preferred.

MS

Michael Seibel

08/16/24

@ Y Combinator

Aim for close to equal equity splits among co-founders to maintain motivation and prevent resentment.

MS

Michael Seibel

06/07/19

@ Y Combinator

While equal equity splits are a common guideline, they may not always be applicable; consider the future motivation of your co-founders when deciding on equity distribution.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

Equity splits among founders should generally be more or less equal to avoid future conflicts, as significant mismatches can lead to resentment and issues down the line.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

It's crucial to discuss equity early and openly among founders to ensure everyone feels the split is fair and representative of their contributions.

YC

Y Combinator Cast

04/28/17

@ Y Combinator

In a startup with multiple founders, equity allocation should ideally be equal to avoid potential conflicts and ensure trust among the team.

HT

Harj Taggar

03/26/21

@ Y Combinator

If one co-founder has been working on the idea longer, it may be reasonable to adjust the equity split, but avoid short-term optimization that could harm long-term motivation.