Well, to do this in a fair way, three things should normally be taken into account:
prior experience of the founders
their contributions to the project (tangible like cash and intangible like ideas)
future expectations of their roles and responsibilities in the project
This is the core basis of how FES works.
It's easy as 1-2-3:
Step 1: Founders are asked simple, short and objective questions.
Step 2: Based on their answers our built-in algorithm estimates their relative contribution to the venture.
Step 3: Based on the estimations our system suggests the most fair way to split equity among the founders.
FEST calculates a static “snapshot” of what current equity shares of each founder should be.
Founders can use FES to understand what are their current fair shares of equity in the startup. It’s important to remember however that all startups live
in a state of a constant flux. You may want to use FES regularly to check how your fair shares of equity are changing based on the changing situation in your startup.
We are now working on an advanced version of FES tool which will allow capturing a dynamic equity split among founders. Using it, teams will be able to regularly re-calculate their equity shares.
This tool will be most useful for teams who view equity as remuneration to the founders for the work they do, since at an early stage of startup lifecycle founders are typically not paid salaries. Similar to remuneration, equity amounts should be aligned to founders’ performance, their contribution to the project, even actual time spent. It won’t be fair, if in spite all the changes in the course of a startup life, founders’ shares will just remain intact.