One major complicating factor with granting equity in an LLC is that W-2 employees of an LLC cannot hold equity in. Option pool: 20 percent, which can be divided up among employees. Appoint your board of directors. After a year, a founder is entitled to 25% of their equity. To determine what those may be, and how the value of your equity may grow despite founder dilution, you can use the following dilution calculators: How to Calculate Founder Dilution; Illustrating Founder Dilution; Best. Allocate the different items, tasks, areas in Column A. It is for this reason that Y Combinator introduced SAFE notes in 2013,. More on this below. As an ambitious startup founder, there's little doubt that you're hungry to scale your venture and showcase your product, service or solution to the world post-haste. At a typical venture-backed startup, the employee equity pool tends to fall somewhere between 10-20% of the total shares outstanding. Your startup and own 100% in common, founder stock. Weight. Cash-strapped startups and business owners typically use sweat equity to fund their companies. Equity Calculator. Founders Benefits: A fair distribution of stock amongst inventors encourages them to continue to be dedicated and active in the. Examples are in there for demonstration purposes, create your own elements from scratch. DOWNLOAD the Template. Below is. Co-founder Equity Split. The type of equity that we’ll be sticking to throughout this article is stock that represents an ownership interest. That is why FI developed a groundbreaking 'Equity Collective' where your program Leaders, Mentors, and FI HQ are vested in the success of your. How to calculate return on equity (ROE): the full guide. Startup equity toolkit. Use equity management softwares. A better approach is to use a co-founder equity calculator or a framework like the Slicing Pie model to determine a fair and dynamic equity allocation based on actual inputs and outputs. You grab your two best friends, get all excited, and then start a company together. By filing the 83(b) election within 30 days after you receive the. Capbase lets you designate your board of directors, add and remove members, change their cash or equity compensation, and handle indemnification agreements. 6775. per share for a total of $ 21,600. Scenario 2: Investor Equity Stake. A typical (minimum) vesting schedule for a founder is 48 months with one-year cliff, but. A Section 83(b) election can allow a startup company founder who receives restricted stock to save a substantial amount of taxes because tax is based on the fair market value of the property when it is granted, rather than its fair market value on the date that it vests. It aids in determining the company’s worth for potential investors, founders, and stakeholders. One of the most important things you should work for is to handle a co-founder’s departure professionally and respectfully. Multiply the price of the share with the financial worth of the individual’s contribution. The company bylaws typically authorize the company directors to get an EIN and setup a bank account for the newly formed corporation. You can write from 2 to 5 different co-founders. In this scenario, the Equity Calculator helps confirm that both co-founders have an equal equity share, each worth $750,000. Get Started!Common equity allocation methods among co-founders include equal splits (such as 50-50, or 33-33-33), or a senior controlling partnership, where one founder has a larger stake (such as 60-40). The initial allocation of this equity will be broken down into three groups: Founders will be allocated 8,000,000. Here's how to do it. A typical (minimum) vesting schedule for a founder is 48 months with one-year cliff, but vesting. A simple agreement for future equity delays valuation of a company until it has more performance data on which to base a valuation. Look at your historical growth curve to calculate monthly, or better yet, your weekly revenue growth rate. 00001. You can also ask if they’ve dealt with personal or. Use this simple Pre-Money and Post-Money startup Valuation Calculator by 100X. YOU PICK ME UP, AND I'LL DO THE SAME. In the world of startup funding, founders are always on the lookout for simple, fast, and creative ways to raise capital. Get started for. How to calculate start-up equity? The start-ups need to decide how will the equity be divided among the different groups (co-founders. 2. Equity is usually divided among founders, investors, employees and advisors. Weight. 50/50 the. 2. Equity calculator. S-A is $0. WilmerHale is providing direct access to a Co-Founder Equity Calculator, an online tool built and operated by a third party. For us, anything that has the word ‘simple’ is already winning! At Cake, it’s all about simple and fast. This is the first talk about equity stake and valuation. 4. In the Silicon Valley Startup Attorney article, “Founders & Startup 101: I) Forms of Equity”, Chris Barsness outlines the most important terms that founders need to know in the world of startup equity and vesting. The founder’s stake of 60% is now worth $12M despite the dilution (i. On day one, founders own 100%. Thus, post-money valuation= $4,000,000 + $2,000,000 = $6,000,000. With more conservative spending we managed to stay above 50% equity in the cap table. Therefore you should continue to. One drawback of an equal founder equity split is that it can impact decision-making and lead to stalemates if the partners don’t agree on something. The global SaaS platform for founding, operating, and investing in scalable, high growth companies. For example, a COO could receive a $110,000 base salary, a 20 to 30% bonus for hitting specific milestones, and some equity. How to split equity among co-founders : YC Startup Library | Y Combinator. Total Shares: 5,000,000; Share Price. Please use the calculator at your own discretion and direct any questions or. Limit the stock option pool. Generally, equity calculators will ask you to input your start date, the initial amount you were given in stock and the company’s number of outstanding shares. The startup equity calculator is used by entering details of each investors and founders. The Founder/Advisor Standard Agreement, or “FAST”, was developed by the Founder Institute to make the advisory agreement process more efficient for startup founders. The average COO of a startup gets paid anywhere from $140K to $200K plus equity and bonuses. These include who is founding the company, what the company structure is, who. The calculator will then calculate the total equity in the business and the equity each founder has. Co-founder equity split - (US) Startup Market Data 45%/55% :. Download the Grunt Fund Calculator – Expanded to accommodate up to 20 Grunts! The video below provide a quick explanation on using the calculator. Churn Rate: The rate at which a startup loses customers during the acquisition process. The median level of founder ownership shown is 15% while the average is 20%. Last week, Grover had posted on X platform (formerly Twitter) about the. The Pie Slicer. Then, multiply the resulting number by 100, and you will have your profit margin. It is for this reason that Y Combinator introduced SAFE notes in 2013,. Venture Capital Providers: 30 to 40 percent. Here we will make a scenario for a startup where the founder holds 100% ownership of the company and how it decreases with each and. Fair Equity Allocation. Let’s assume that a company has a total of 10 million shares issued, and a founder holds 4 million shares while another holds 2. Let’s assume that a company has a total of 10 million shares issued, and a founder holds 4 million shares while another holds 2. To calculate the churn rate, divide the number of customers you lost last quarter by the. The founder equity split should be a considered, not hasty, decision. If a CEO does not exist at the time of company formation, keep some equity reserved for the role in the future. Here is the link to the spreadsheet: is a link the online Pie Slicer application that makes all this much easier: founders and employees may also have to account for the value of their equity grants and stock options in their income calculations. Industry leading data to motivate your team. Get audit-ready without the worries and stay on top of equity across teams, functions and territories. In this guide we go through important questions about startup equity for founders, employees and investors, including cap table management, splitting equity with your co-founders, common and preferred share classes, vesting schedules and employee equity compensation. * If your revenue correlates to user growth, then use this figure. A tool like this equity calculator can be a helpful way to take a more nuanced approach. Essentially, startup equity describes ownership of a company, typically expressed as a percentage of shares of stock. By that point, she had founded or cofounded several venture-backed startups (she’s up to five). Liquidation preference is a critical aspect of startup financing that impacts both shareholders and founders. Co-Founder 2 alone can not run the company and there is no equity left to hire new talent. If you have advisors that are indispensable to the venture, it may be worth it to give them a small percentage. Funding and exit simulations. How to value your startup – method #1: Decide how much money you want to raise. The range is wide. To allow people to collaborate click the Share button (top right corner). At each round, a new investor will ask for 10-25% of equity (dilution), and a top-up of employee share options (ESOPs) Round size increases by ~5x between each financing round. The inventor who is recognized as the technology leader in his domain. Your salary is less than what you’d get at a big company. As you might expect, technical co-founder equity should be reasonably high since they share the responsibility of running the. Download the Calculator. Check Out the Pie Slicer! Manage the contributions of your whole team using the online Pie Slicer software. Many first-time founders have little clue about how capitalization tables work when they are launching a new startup. You and your co-founders can answer a series of questions and get an unbiased estimate for how to break up ownership. Most founders can expect to give away at least 10 percent of their startup during the initial seed round. e cost of a mobile application. However, in many cases, revenue is not an accurate measure of your company’s financial. Allocate money to investors. This can be taken from similar job postings and the market as a whole. We compiled the largest ever set of benchmark data, comprising over 20,000 option grants from more than 1,650 startups across the US. See full list on embroker. Enter your business's name and industry. vedant_ag. risk as probability of failure is the same across all employees, but the EV opportunity costs for techies is much higher, because the average income at x years experience is drastically higher for techies vs biz. 5% equity. There are multiple methods to calculate your equity ratio. The company contribution is rarely exactly 50/50 and the equity split should be based on a variety of factors, including those discussed above. 45% of salary. This is why equity dilution is sometimes called founder. It’s simpler dividing a multiple of 10 than it is a multiple of 3 or 7 or 8. On the other hand, convertible notes allow for conversion into the current round of shares or a future financing event where a. How much do startup founders make after exit? The median and average paydays were $268mm and $708mm respectively. Median CEO -Founder 100k-250k 200k 0-100k 5-20% 9. This topic is widely written about, but modern wisdom is that even splits are not ideal and that co-founders should divide equity according to the value they’ll create for the startup. "How much. 5%. Once you’re happy you can submit the 409A report to your. Another study by Kruze Consulting found that the average startup CEO salary was $146,000. LLCs allow for owner income to be taxed as pass-through income; in practice, startup founders will rarely be able to take advantage of this tax. Angels can acquire a direct equity position, such as a 20% to 30% stake in the business. A SAFE can be converted into preferred. Part 1. Because convertible notes are debt, if a startup fails to raise a Series A, they may have to pay that money back to the investor. Consisting of 10% – 20% ownership of your company, this pool is typically drawn from founders’ shares. Senior controlling partner. Part-time co-founders typically commit between 10 to 30 hours per week. Investor’s 20% is thus worth nothing. The calculator suggests an equity split determined by the anticipated effort-based. Currently available for Australia Pacific companies only. You can use this sheet to calculate your own values by replacing the numbers in the Absolute Scores table. More countries coming soon! EQUITY DILUTION CALCULATOR. Summary. Reset. It's important for startup founders to know how much equity they are ready to give up. she owns 63% of the startup's equity. Determine the gap between their salary and total compensation. Angel Investors: 20 to 30 percent. [startup] founder is, put simply, the. In this scenario, perhaps the senior controlling partner came up with the idea and is serving as the founding CEO. 2. In exchange for their abilities and services, you would like to give them shares…What is common equity for startup? What is equity in a startup? Essentially, startup equity describes ownership of a company, typically expressed as a percentage of shares of stock. 5% during the Series A round, according to Carta data from Q1 2023. Those with a lighter, 10-hour-per-week commitment may receive closer to 5-10%. Index VenturesOptionPlan. A startup equity calculator is a simple tool that lets you enter the number of founders, their ownership percentage, and their capital contributions. Suppose a startup is raising $5 million in growth capital in an upcoming funding round. If you feel awkward about the results – for example, you’ve overstated your contributions, you can recalculate and. Although we find this tool to be of value to our clients, we do not sponsor its use or work directly with its developers. Fill out as many of the questions below as possible. No need to give up equity or pay interest; Forces founders to be creative and resourceful; Can slow down growth;. Founders typically set up a vesting schedule when they set up their companies, even if they are solo co-founders. To calculate this figure, subtract total expenses from sales and divide by revenue. Churn Rate: The rate at which a startup loses customers during the acquisition process. All the calculations that happen in the background are in this sheet. Be very suspicious of yes-men: they find everything you say great, and think all your ideas are awesome…. Median and average ownership were 9% and 11% respectively. In the end, however, they don't have your back. Once they hit the four-year mark, they can swoop into 100% of their equity. Disputes over equity can kill an early stage startup fast. Founders equity calculator. Option pool: 20 percent, which can be divided up among. Each co-founder needs to go to Startup Equity Calculator. Title Cash Comp Cash Median Bonus % Co Equity % Co. After inputting some basic information about the grant and the startup’s estimated valuation, the Excel spreadsheet embedded below calculates the stock grant’s value. 2%, Founder 3 16. This includes the nature of your startup, your ideas about fairness as a principle and how you will fund the startup. Build your company’s tech team, bringing on and managing new employees. Following the transactional approach, the team agrees that co-founder A should receive 25%, plus ¾ of the remaining. Common equity allocation methods among co-founders include equal splits (such as 50-50, or 33-33-33), or a senior controlling partnership, where one founder has a larger stake (such as 60-40). A startup equity calculator can help you make equity projections and get a better understanding of your stock options. prove capital for the company to be founded amounting to € 30. The average equity share for a startup founder varies widely but is often in the range of 20-30% after multiple funding rounds. Equity calculator. How investors decide how much your startup is worth. Founders typically set up a vesting schedule when they set up their companies, even if they are solo co-founders. If you need help valuing your company, we offer business valuation consulting services. equity calculator excel spreadsheet co-founders split. Additionally, the backyards of each signed deal matter a lot. The CEO co-founder gets 5 more for being a CEO and 50 more for being a successful entrepreneur. For instance, if your company has three co-founders and you divide equity equally when you launch, each would own 33. Share. Often, startup founders, employees, and investors will own equity in a startup. 5% and Founder 4 6. The preferred class of stock in a startup is typically subdivided into series, each representing a different round of financing, like Series A, Series B, and so on. Single-trigger accelerations cause the full or partial vesting of employee stock when a company changes control. That means you and all your current and future colleagues will receive equity out of this pool. As noted above, this model is intended more for educational purposes than for performing serious valuations. Let’s look at the valuation for two broader types of this form of equity. The formula for calculating startup valuation varies and may involve different methods, such as the. Splitting startup equity. The pitfall of giving more than 20% may not be. They also have little time to focus on learning the financial and. Enter the company's stage. Use our free startup valuation calculator to find out what your SaaS business is worth and what its valuation could be with equity-free growth capital. Incorporate, and set the number of authorized shares. Startup Equity Calculator. Below is. Equity Calculator for Equity in Start-up Companies. Based on 5 key factors such as team/management, business, product, market, sales and marketing, there are 30 multiple-choice questions that get you an accurate and precise startup valuation. This increases the threshold for the calculations from $107,000 to $124,000, increases the lower Reg CF threshold for investors from $2,200 to $2,500, and increases certain thresholds on the 12-month amounts that issuers can raise (e. I have been a solo founder. They're the people who contribute their time and expertise to startups — time and expertise that's absolutely invaluable to a company's growth as founders often wear a million different hats and learn on the go. It is a discount off the price per share. One key criteria for startup equity allocation is who had the original idea and developed the business plan (although the execution is arguably more important). Setting a value for your stock now rather than later is generally preferable. Taxes paid at sale (20% LT capital gains & 35% ST capital gains tax rates) $200,000. Type any values/percentages into the inputs, and the outputs will update. Founders equity calculator. In essence, they are an agreement between the employer and employee that gives the latter the right (but not obligation) to buy company shares in the future at a pre set purchase price. Our free startup equity calculator can help you understand the potential financial outcome of your offer. Option #3. Startup Equity Calculator & Benchmarking | Cake Equity TOOLS Equity benchmark calculator Use Cake's Equity Benchmarking tool to answer the question. Startup financial advisor David Ehrenberg suggests that 5 to 10 percent is a fair equity stake for CEOs who join the company later. Our startup equity calculator is designed to help quantify each of a startup’s co-founders’ contributions in order to more accurately split equity in the company so you can prevent. However, for founders, there's a trade-off to consider. Fill out as many of the questions below as possible. You grab your two best friends, get all excited, and then start a company together. But for different startup companies, this combination of 4 groups can have different categories. Legal Counsel on Job Offers. A cliff period means that during that period, no shares are owned by the person. com If you need to check how many shares each co-founder in your startup should get based on proven industry standards, use our startup equity calculator. The calculator basically takes you through each event that can affect the division of a company’s equity. Learn to use a simple framework and my robust calculator to help you and your cofounders to find a fair equity split. At the time, Airbnb had a $200 million valuation. Revenue. Our startup equity calculator is designed to help quantify each of a startup’s co-founders’ contributions in order to more accurately split equity in the company so you can prevent disputes between team members and focus on what matters. The company has money, either from investors or from revenue, and they give you some of that money every month. The first investors in your startup are likely to be friends and family or angel investors. In the pre-seed and seed funding rounds, startups raise anywhere from $50,000 to $200,000 for a 5% to 10% equity stake. 2. You also give an investor 2,000 shares in return for some much-needed capital. One such method is the Founder’s Pie calculator. This allows you to be taxed all at once for the value of your equity, which could. Startup CEO Salary Calculator US Based Companies that have raised under $100M. The inventor, who is recognized as the technology leader in his domain. 5% Per Brad Feld, askthevc blog, 1-16-08Adjust the dilution calculator inputs below to reveal what happens when you sell equity to grow versus using founder-friendly debt financing. Under “Prior Round,” select round type and enter the post-money valuation. Assume that we have a high technology start up spinning out of a university with four members of the founding team. New shares are added when the stock option holders exercise the option. CEO and Founder of Kruze Consulting. We compiled the largest ever set of benchmark data, comprising over 20,000 option grants from more than 1,650 startups across the US. The more rounds you raise, the more dilution you take. This article delves into liquidity preferences in startups,. On day one, founders own 100%. Your founders’ agreement will be unique to your business, but all founders’ agreements should cover some basics. Investors own 50%, and get $18 million, split between two firms. Research by SaaStr backs up this suggestion. They agree that the amount of capital that each invests in the venture will account for 50% of the equity split and they will divide the other 50% equally. Define the role you are looking to hire. Get audit-ready without the worries and stay on top of equity across teams, functions and territories. This calculator asks questions about the company and each founder—their roles, responsibilities, skill sets, and other factors—to model a recommended founder equity breakdown. Investment vs equity: Balancing cash and company control. But if the value comes in below the Valuation Cap (what is referred to as a “down round”) then both SAFEs and Convertible Notes will convert at the lower value. Founder, C-level Employees, and Board member salaries. from the old $1. Docracy: An open collection of free legal documents. When a startup raises a priced round in the future, SAFE holders' investments will convert into preferred shares using the valuation cap in the agreements to determine the price per share. What happens to existing shareholders in an IPO. For a hi-tech startup, the ideal weight should be around. If the question doesn't apply to your situation, leave. The company receives a new investment of $1,000,000. Calculate the dilution in investment and ESOP step by step. #. "You should only work for a startup if you really believe in the mission and team. The basic formula is simple: if you need to raise $3 million, and investors believes the company is worth $10 million, you will have to give them 30% of. As with all strategic business decisions, there are several factors to consider when awarding equity to employees. Startup equity. Carta’s co-founder equity split tool is a dynamic tool that asks questions about the company and each founder—their roles,. Startup equity calculator determines ownership percentages and share prices for a startup after a funding round, considering founder shares, ESOP pool, and investor. Spargo says the calculator is built to help founders “understand the impact that their salary has on the long term value of their equity” by using a graphical representation to show how paying. • New business owners • Startup founders • Co-founders • Entrepreneurs So, you have a great business idea. 2U/edX stock price falls by 50% View Close Class Central. In the Silicon Valley Startup Attorney article, “Founders & Startup 101: I) Forms of Equity”, Chris Barsness outlines the most important terms that founders need to know in the world of startup equity and vesting. • Startup founders • Co-founders • Entrepreneurs So, you have a great business idea. FounderEquity •Founder Equity: Not a legal term but used in common parlance to refer to the shareholding (ownership) given to someone who participates in the initial creation and early stages of a startup. If you're like most startup founders, you're probably always looking for ways to get the most out of your startup financing. How to use the startup equity value calculator step by step? If you're a startup founder, equity is likely one of the most important things on your mind. Startup Equity Calculator. Here are two additional articles that also provide good guidelines. With the FAST agreement, founders and advisors can agree on how to work together, what to accomplish, and the right amount of equity compensation in a short and simple 5-pager. Step 1 - Dividing equity within the organization. 235M max. The Guidelines method. Look, starting a new venture is hard, but having to figure out what is fair for each cofounder shouldn't be. But, to stay on the well-trodden path to success, getting your finances and investments in order is essential. What is Net Worth? Net worth is a key concept in personal finance and is often used to measure an individual’s financial health. This is the first time that we’ve seen the average and median not move together, reflecting a change in the distribution. Key takeaways: It’s common for your first, most crucial hires to ask for 1% of the company or more. For example, under a 4 year vest with a 1 year cliff – if the co-founder leaves or you fire them within the first. Early-Stage Startup Funding Assumptions. Create an employee stock option pool, or ESOP. Shake: Create, sign and send legally binding agreements in seconds. Startup equity. Average Startup CEO Salary in 2023. This calculator is a step-by-step guide that takes into account a number of factors, including the stage of the company, the industry, the amount of money raised, and the pre-money valuation. P and anything else that can be used as a deployable asset to help create buzz around your startup’s profile. 1. This equity is determined by the investors and is considered the pre-money valuation. The division of equity in a startup will depend on various factors. The sheets in the cap table. 5 million shares. Print out your results and bring them to the next meeting for discussion. For example, if there are three founders of a tech company, consider splitting the founders equity as follows: 35% for the CEO, 32. Tech co-founder equity: Hiring a CTO is the right choice if you can afford tech salary and a fair amount of equity. As investors seek to safeguard their investments and maximize returns, startups must navigate these preferences to secure funding while ensuring long-term growth. Snapchat cofounders Evan. Graduates of the Founder Institute are creating some of the world's fastest growing startups, having raised over $1. This free tool (based on Gust data) will help you ask the right questions to determine how much value each founder will contribute, and give you a sensible, objective recommendation for a. Snapchat co-founders Evan Spiegel and Robert Murphy owned a combined 37% of Snapchat before it went public. To be sure, if you raise a priced round at a high valuation, the long-term difference in dilution between raising $250,000 through notes and, say, $750,000 won’t be much. This calculator walks you through a variety of events that can affect the division of a startup's equity. 01% of shares if the company goes public, or…next to nothing. 4. 50 after one year and $0. Combine experience level with team and company data for the most accurate offers. Startup. e. Legal Counsel on Other Equity Choices. The ideal co-founder will agree on most things (80%), but will disagree a bit and bring you a different perspective (20% of the time). Inputs that go into this model. The effect of ESOP on ownership? Use the startup dilution calculator to understand impact of ESOP & VC on founders. We agree to reduce our stakes to 40% each and contribute a total of 20% (10% from each of us) into the Founder Stock Pool. Most commonly, startup advisors are paid with anywhere between 0. CFOs, Heads of People and law firms love that Ledgy. Follow these steps to calculate a baseline valuation figure: Calculate your revenue run rate (RRR), which is the most recent month’s sales times 12. Source: The Founder Institute. New Tax Law Improves Startup. Start-up equity states the extent of ownership an individual has in a start-up. Here’s a super simple example: We each own 50% of the company. The calculator can be used to. “Equity ownership is not only important for aligning incentives between founders and investors, but crucially it drives alignment across the entire organisation. (according to Kruze Consulting) As a startup founder, you have many complex decisions to make—the trickiest one may be how to determine your salary. 3 percent. Founder Equity. Co-working space credits (WeWork or something similar), Commuter stipend or Lyft/Uber credits, Continuing education stipend (as it aligns with work needs), Weekly or monthly “team days” or social outings, Matching 401K (larger startups). by Greg Miaskiewicz • 8 min read published April 4, 2021 • updated August 17, 2022. Investing in C Corporations has major tax advantages for startup investors. Once you have all the necessary numbers, it’s much easier to compare multiple offers (or compare your new job offer to your current equity package). The 3-person executive team, including a CEO if one was hired, owns 10%, and splits $3. However, the price used for SAFE 2 is not $0. Those on the higher end of that range, 20-30 hours, would merit more equity, around 10-20% for a 2-3 person team. Equity-based compensation plans often require smaller upfront costs than traditional forms of employee compensation, such as cash bonuses or salary increases. calculator. The Startup Calculator can help co-founders understand the ultimate financial outcome for. The difference of 100,000 is the number of shares that need to be issued. Many startups set aside between 10-20% of their shares in order to have the means to incentivize employees. Direct equity stake. By taking this course and utilizing my easy-to-use Startup Equity Calculator (UPDATED to handle up to 7 cofounder slots--more than what 99. 5 million shares. Startup value: Total startup score * Average valuation of similar startups. 99% of you will need), you'll learn how to avoid this unfortunate, yet totally avoidable, situation. Do you want to automate and digitize your cap table? With Capboard you can manage your startup's equity with all these benefits:. Employees Carta’s Insights team deciphered the state of founder equity division by studying the data from 18,000 founders, across 8,000 startups actively using Carta software for their captables. To use the Startup Equity Value Calculator, enter the company's stage of development, the amount of equity available, the valuation of the company, and the expected return on investment. Here are some of the things our template can do, Estimate equity re-distribution across five rounds of funding. 2. The whole pie. We are not a cap table startup; instead, we like to think of Slidebean as a fundraising OS for startup founders. This makes it easy to divide up the equity fairly among the founders. However, you may want to avoid setting a price or a. 0% CEO -Non-Founder 180k-260k 225k 0-150k 3-7% 5. Usually, for seed rounds, investors will take 10-20% of your business’s equity. 20 reviews 2,318 views | Start the discussion! | Bookmark download for free. Input your individual view of the contribution by each founder on the organization. Investment Amount / Valuation = % Equity Offered. The founder equity split should be a considered, not hasty, decision. 3.