Achieving MVP status is quite the accomplishment – and the fact that you are concerned about equity means you’ve surpassed a number of hurdles that trip up many startups. However, determining and dividing equity portions is always an uncomfortable process – especially if co-founders are offered different equity shares.
As the technical founder, it is important that you demonstrate and disclose your thought process with the division of equity. This will ensure that your business will be able to continue to function and that your relationship with your co-founders stays intact. It is vital to remember that while the idea and technical portion may be most important to you – it is not the only thing that took your idea from simple brainstorming to MVP status. Non-technical co-founders may have gotten the first big sale or handle any number of things that you do not.
There is really no right or wrong answer to this question. However, if your co-founder has been around since the beginning, I do not recommend dividing the shares unequally. Dividing equity equally can make co-founders feel as equals in the ownership structure of the company.
Dividing equity can be a complicated process. A lawyer can offer help in dividing equity and even offer further advice more specific to your situation. If you need assistance finding a seasoned equity attorney, reach out to us.