Equity conversations feel awkward, but avoiding them is worse. Here is a simple way to approach it.
Start with contribution, not ego
Think about what each person brings over the next few years: time, skills, capital, and risk. Past work on the idea matters less than future work.
Use vesting
A common setup is four-year vesting with a one-year cliff. If someone leaves early, they keep only what they earned.
Write it down
Put the agreement in writing early, even before you raise money. Talk to a lawyer when you incorporate.
Revisit roles, not just numbers
The split matters less than clear ownership of decisions. Agree on who owns product, engineering, and growth.
This article is general information, not legal or financial advice.