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MS

Michael Seibel

08/16/24

@ Y Combinator

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

Video

YC

Co-Founder Equity Mistakes to Avoid | Startup School

@ Y Combinator

Co-Founder Equity Mistakes to Avoid | Startup School

08/16/24

Related Takeaways

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.

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.

MS

Michael Seibel

06/07/19

@ Y Combinator

Equity splits should maximize the motivation of your co-founders to stay committed to the company over the long term.

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.

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.

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.

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.

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.

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.