Who should own what, and what is left for the team?
Split founder equity from each founder's real contribution, not a coin flip. Then plan the option grants for your first 20 hires, including the people already aboard, and check it against what investors expect.
Based on the Founder's Pie method. Set how much each factor matters for your company, then score each founder 0 to 10 on each. The split follows the weighted scores.
List who is already aboard and what equity they hold, then the plan fills the rest of the first 20 from median benchmarks and totals the pool.
We send the split percentages and the option-pool total, always as Founder A, B and C, never the names you typed and never your factor scores. One copy reaches the Lab so a human can pick up the thread if you want one. Nothing else leaves this page.
The split uses the Founder's Pie weighted-factor method; change the weights and it moves. The hire plan uses median benchmark grants and your own already-aboard entries; the seed option pool norm of 15 to 20 percent is the buffer investors expect on top of these grants, for refreshes and the hires past 20. It is a starting point for the conversation, not legal or tax advice.
The card is drawn in your browser from your own numbers. It shows the split and the option pool, never the founder names. It only leaves this page if you save it.
- The Founder's Dilemmas, Noam Wasserman. The research on why fast, equal splits so often go wrong later, and how to avoid it.
Know more about this book
Noam Wasserman spent nearly a decade studying around ten thousand founders, and the book distills what that data says about the choices that quietly decide a startup's fate. His central finding is blunt: most startups stumble for people reasons, not because the product or the market was wrong. The dilemmas begin at the very start, with whether to found alone or with others. Solo founders avoid cofounder conflict but carry more load and can look riskier to investors. Cofounder choice matters enormously, and the data shows that founding with close friends or family, while tempting, often raises the odds of a painful split. Roles and titles are another early trap, because dividing them by ego or convenience rather than skill creates friction as the company grows. The book's most cited lesson is about equity splits. Founders who divide equity fast, equally, and without real negotiation, the quick handshake, are far more likely to regret it. The reason is that contributions diverge over the first few years, and a static equal split frozen on day one becomes unfair to whoever ends up carrying the company. Wasserman argues for slower, franker negotiation, for vesting on every founder's shares, and for revisiting the split as reality unfolds. Running through the whole book is the rich versus king tradeoff. Founders can optimize for wealth, rich, or for control, king, but rarely both. Those who insist on staying in control tend to raise less and build smaller companies, while those who optimize for value give up control along the way. The same tension shows up in hiring, in taking investment, and in who sits on the board. One of the starker findings is on succession. A large share of founders are no longer CEO within a few years, and many are pushed out, often right around a financing event. Wasserman calls this the founder's paradox, where success itself raises the odds you are replaced. The book is academic in tone but intensely practical in its implications. Its through line is to treat the early people decisions, cofounders, roles, equity, and investors, as deliberately as the product itself. For anyone splitting founder equity, it is the strongest case for negotiating openly and adding vesting instead of shaking hands on a fast equal split.
- Slicing Pie, Mike Moyer. A dynamic, contribution-based model for splitting when the work and risk are still unfolding.
Know more about this book
Mike Moyer wrote Slicing Pie to fix a problem every early team faces, namely how to split equity fairly before there is any money or certainty. His starting claim is that a fixed, upfront split is almost always wrong, because at the start you cannot know who will actually contribute what. Instead of guessing, Slicing Pie allocates equity dynamically, based on the real value each person puts at risk over time. The model treats the company as a pie made of slices, and you earn slices as you contribute. Contributions count as at-risk inputs: unpaid time, cash, ideas, relationships, equipment, and space. Unpaid time is valued at a fair market salary for that person, so a senior engineer working for free earns slices faster than a junior one. Each input is multiplied by a risk factor, because some contributions are harder to recover than others. Cash and unpaid work, which you cannot easily get back, carry a higher multiplier than, say, lending a laptop. At any moment, your share equals your slices divided by everyone's slices. Because the total keeps growing, the split self-adjusts as people contribute differently, so it stays fair in hindsight. Someone who promises a lot but disappears simply stops earning slices, and their share shrinks as others keep going. The dynamic phase is meant to be temporary. When the company can pay market salaries or raises real funding, you reach what Moyer calls the well-timed fork and freeze the pie. Freezing converts the live percentages into a fixed, conventional cap table. The model also sets clear rules for people who leave, separating quitting or being fired for cause from leaving without fault, so a departure does not lock in an unfair slice. The appeal is fairness, since whoever took the most real risk owns the most, with no arguments about predictions that never came true. The main criticisms are that it takes discipline to log everyone's contributions honestly and that it can feel transactional between cofounders. It works best in the pre-funding, pre-revenue window, which is exactly when founder splits are hardest. Moyer backs the book with free explainers and tracking tools on his site, so you can try the model before you commit to it. Read alongside this tool, it is the strongest case for treating an early split as something that should flex with contribution rather than freeze on day one.
- The Founder's Pie Calculator, Frank Demmler (CMU). The weighted-factor method this tool runs on. Read it.
- Rewarding Talent, Index Ventures. The handbook on employee options and how to size the pool. Read it.
- How to split equity among co-founders, Y Combinator. The case for splitting near-equal, and when not to.
- The Holloway Guide to Equity Compensation. A thorough reference on grants, vesting and the tax that bites if you ignore it.
Want a human reading the split with you?
Email meMore instruments in the Founder Lab. Pair this with the Dilution Scan and the Runway Scan.