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Monetary contribution calculation
Sum up all cash contributions used for business-enabling things like paying developers, designers, copywriters etc., paying for contextual advertising,
domain name and hosting, subscription to any tools or services your startup couldn’t do without and other expenses like office rent, printing of business cards, buying any business-enabling
equipment (without which your startup wouldn’t exist, like a car for a delivery service), or providing to the startup any equipment which the founder could otherwise
rent out or sell to a third party (in this case calculate the estimated rent or sale value).
Count in only absolutely necessary things, ideally agreed on by the team.
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Founder Equity Solution ("FES") model is based on an algorithm that calculates shares of equity for each founder based on information (selected answers) provided by the users. The quality and precision of the calculated equity split depends on the quality and precision of the answers given. The algorithm used in the model is based on research findings and statistical data. It works well for most startups. However we understand that each startup is unique and each founder may have personal strengths or roles in the startup not included into our model. Hence, we suggest that you use the equity split calculated in our model as a starting point for further equity negotiations with your co-founders, rather than a "set-in-stone" decision. For the avoidance of doubt, equity calculations provided by the model are not legally binding.