Founders' Equity Calc

Let’s look at a hypothetical example. Assuming that we have a high-tech startup, spinning out of a university with four members of the founding team.

1. The inventor, who is recognized as the technology leader in his domain.
2. The “business guru” who brings commercial and industry knowledge to the company.
3. The tech expert who has been the inventor’s “right-hand man.”
4. The research team member who happened to be in the right place at the right time, but hasn’t – and won’t – contribute much to the company or its technology.

If these were all first-time entrepreneurs, it’s likely that they would each get 25% of the company’s stock, because “it’s fair.”

Let’s take a look at what the Founders’ Equity Calculator says.