Startup Equity Calculator
Unravel the basics of startup equity with our dedicated calculator
designed to empower budding entrepreneurs in Chennai and beyond.
Introduction
Welcome to the Startup Equity Calculator, an essential tool for every entrepreneur navigating the intricate world of equity distribution.
Fill Out Questions
Complete as many of the questions below as possible. If a question doesn't apply to your situation, you may leave the answer blank.
Limit Selections
For questions allowing multiple founder selections, try to limit your choice to one or two key individuals.
Get Results
After submitting your information, review the detailed breakdown of equity shares between the founders to make informed decisions.
Get Started
To get the most accurate results from the calculator
Relevant Links
A Founder's Ultimate Guide to Startup Equity
foundersnetwork.com
Understanding how to manage startup equity distribution successfully is one of the core pillars of ensuring your early-stage startup is set for success.
How to split equity among co-founders
ycombinator.com
Founders often ask how they should split equity with their co-founders.When I search the web on this topic I often see horrible advice, typically advocating for significant inequality among different founding team members
Everything You Need to Know About Equity to Scale Your Startup
startupindia.gov.in
Imagine the following- you start your venture, the business gains a lot of momentum, and you bring an all-star team to help you build your startup. In exchange for their services, you think of offering them some share of the company.
Splitting Startup Equity — Introduction
startups.com
Welcome to our four-part Splitting Equity Series. This is our Introductory piece and will continue to be split up into four phases:
FAQs
Find answers to common questions about our service, compatibility, and technical requirements.
What is the purpose of equity distribution?
Equity distribution is crucial for recognizing individual contributions, ensuring commitment, and aligning everyone's interests towards the startup's success.
How does leaving the company affect a co-founder's equity?
If a co-founder departs early, they forfeit any unvested equity. Typically, equity vests over 4 years without an initial cliff, meaning they retain only the portion vested during their tenure.
Does working on a project alone before getting co-founders affect equity?
While prior individual work is valuable, it doesn't automatically grant more equity. Consider adjusting the vesting schedule to fairly reflect early contributions while being equitable to new co-founders.
Can the equity calculator handle more than four co-founders?
It's optimized for up to four co-founders. Having more might indicate a need to reassess who is truly essential. Critical evaluation of each role is crucial for effective equity distribution.
What if our startup situation is unique?
The calculator covers many scenarios, but for unique situations, we recommend contacting our team at Anna Incubator for tailored advice and guidance.
When should equity distribution be revisited?
Equity should be reviewed at major milestones, during significant funding rounds, or when there are changes in contributions or roles. It's a flexible process that should evolve with your startup.
How do we handle a founder contributing significant cash?
Treat cash contributions separately. Determine equity based on non-financial contributions first. Then, consider the cash as an investment to calculate its equity value. Remember, a primary cash contributor may be more akin to an investor or benefactor.
