Some founders we talked to were sure that the fair way to divide equity is to divide it equally among all founders. We talked them out of it. Because here's the catch.
Multiple research and reports have shown that equal splitting can lead to such unpleasant things as:
Why is that so? Well, founders who avoid tough equity negotiations and quickly jump to equal splitting may fail to understand strengths of their founding team members and their expected contributions to the project.
Equal splitting may also be a sign for investors that the founding team lacks entrepreneurial negotiation skills
That's why we created FES to help founders avoid common pitfalls associated with equal division of equity.Try FES Now!