Building Startups on aFoundation of Fairness
A free, transparent tool designed to help founding teams navigate one of their most critical decisions: how to split equity fairly among co-founders.
Why Fair Equity Matters
Co-founder conflicts over equity are one of the leading causes of startup failure
65%
of startups fail due to co-founder conflicts, with equity disputes being a primary trigger
Equal ≠ Fair
Most founders split equity equally without considering different contributions, timing, or investment
Emotional Decisions
Without a framework, founders make emotionally-driven decisions that lead to resentment later
The High Cost of Getting It Wrong
Unfair equity splits create resentment, reduce motivation, and often lead to co-founders leaving or legal disputes. These conflicts waste time, money, and emotional energy that should be focused on building your startup. Starting with a fair, data-driven split helps prevent these problems before they begin.
A Data-Driven Approach to Fairness
Our point-based system considers multiple factors to calculate a fair starting point
Point-Based System
Each founder earns points based on their contributions across 10+ different factors. The final equity split is proportional to the total points earned.
Multiple Factors
We consider idea generation, execution roles, technical skills, industry expertise, cash investment, salary sacrifice, joining timing, and more.
Transparent Calculations
Every point is shown and explained. No black boxes or hidden formulas. You see exactly how the final percentages are calculated.
Starting Point for Discussion
Our results provide an objective baseline for your equity conversation, not a final answer. Use it to guide fair discussions with your co-founders.
Key Contribution Factors
*Example weighting - actual calculations consider your specific answers
How It Helps Founders
Built for founders at every stage of their journey
Pre-Launch Startups
Establish your initial equity split before you incorporate. Start with a fair baseline that considers each founder's unique contributions and commitments.
- Define roles and expectations clearly
- Account for idea originators and early work
- Set the foundation for future growth
Adding New Co-Founders
Bringing on a new co-founder mid-journey? Calculate fair equity that accounts for timing differences and existing contributions.
- Factor in pre-launch vs. post-launch timing
- Balance past work with future contributions
- Maintain fairness for all team members
Resolving Disputes
Having disagreements about equity? Use objective data to guide difficult conversations and find common ground.
- Remove emotion from equity discussions
- Provide third-party objective framework
- Focus on facts, not feelings
Preparing for Investors
Investors want to see that your founding team has a fair and well-thought-out equity structure. Show them you've done your homework.
- Demonstrate thoughtful team structure
- Answer due diligence questions confidently
- Build credibility with potential investors
Your Data, Your Control
Complete transparency about privacy and data handling
Local Processing
All equity calculations happen in your browser. Your sensitive data never leaves your device.
No Server Storage
We don't store any of your equity splits, founder names, or financial information on our servers.
Optional Analytics
We use anonymized analytics to improve the tool. No personally identifiable information is collected.
What We Collect (and Why)
- Page Views:To understand which features are most useful
- Calculator Usage:To track completion rates and improve user experience
- Button Clicks:To optimize navigation and interface design
- Error Reports:To identify and fix technical issues
All analytics are anonymized and aggregated. We cannot identify individual users or their equity calculations.
How the Math Works
Transparent methodology behind the calculations
The Point System
How points translate to equity percentages
Contribution Factors
What we measure and why it matters
Weight Distribution
Why certain factors matter more
Industry Best Practices
Our methodology is informed by research from leading accelerators (Y Combinator, Techstars), venture capital firms, and startup advisors. We've studied successful equity distributions across thousands of startups to identify patterns that lead to fairness and long-term success.
The calculator is continuously refined based on user feedback and evolving industry standards.
What This Tool Is (and Isn't)
Important limitations and disclaimers
What This Tool IS
A Starting Point
An objective baseline for equity discussions based on data and best practices
A Discussion Framework
A tool to facilitate fair conversations among co-founders with data to support decisions
Customizable
Results should be adapted to your specific circumstances and team dynamics
Educational
Helps you understand the factors that matter in equity distribution
What This Tool ISN'T
Legal Advice
Always consult with a lawyer before finalizing equity agreements and incorporation documents
Financial Advice
Tax implications and financial planning require professional consultation
A Final Answer
Your team's unique circumstances may require adjustments to our recommendations
One-Size-Fits-All
Every startup is different, and context matters more than any algorithm can capture
Important Recommendations
- Work with a Lawyer:Have an attorney draft or review your founders' agreement and incorporation documents
- Implement Vesting:Use 4-year vesting with a 1-year cliff to protect all founders from early departures
- Document Everything:Put your equity agreement in writing, including roles, responsibilities, and expectations
- Plan for Changes:Include provisions for adding team members, founder departures, and future funding rounds
- Communicate Openly:Use this tool as a starting point for honest conversations, not as the final word
Ready to Split Equity Fairly?
Join thousands of founders who have used our calculator to start their journey with clarity and fairness. Get your results in just 2 minutes.