Founder’s Pocket Guide Quotes

“One of the early tasks facing founders at the formation stage of the startup is deciding the equity ownership split between multiple co-founders. Many teams are tempted to divide the company ownership into equal parts—that is, two founders equals a 50/ 50 ownership split or three founders results in a 33.3% share for each founder. Other situations demand a more thoughtful approach. For example, one founder might be bringing the core technology and associated expertise to the startup and would therefore request a larger equity stake. Regardless of your equity split decision, once all the co-founders reach an agreement, log the equity split in the cap table. The “Founders’ Round” section below walks through this beginning entry.”
― Stephen R. Poland, Founder’s Pocket Guide: Cap Tables