How do I divide up shares in the founding team fairly?

A business idea alone is rarely enough - many start-ups are created as a team. But as soon as it comes to dividing up the company shares, it often becomes difficult: Who gets what percentage? What is fair? And how can conflicts be avoided later on?

The answer is: There is no one-size-fits-all solution - but there are clear principles to help you find a fair and sustainable solution.

The distribution of the founder's shares decides on:

• • Co-determination: Who has how much influence on decisions?
  • Profit sharing: Who benefits from success and to what extent?
  • Motivation: Does every founder feel valued?

Unfair regulations often lead to disputes - and are a frequent reason for the failure of start-ups.

1. 1. Contribution to the idea
      • • Who came up with the original business idea?
        • Who contributed significantly to its development?
   2. Time & labour
      • • Who works full-time in the startup, who only part-time?
        • Who takes responsibility in key areas (e.g. sales, technology, finance)?
   3. Capital & Resources
      • • Who brings in equity?
        • Who provides contacts, expertise or infrastructure?
   4. Willingness to take risks
      • • Who quits their job, forgoes their salary or takes high personal risks?
   5. Future contribution
      • • It's not just the past that counts: Who will create what value in the long term?

• • Equal distribution: Simple and low conflict if all founders contribute to a similar extent.
  • Performance-based allocation: Percentage distribution by capital, labour and responsibility.
  • Dynamic models: Shares develop over time or on the basis of milestones („Vesting“).

For start-ups in particular, it makes sense to hold shares in Coupling power over time.

• • Example: Each founder „earns“ their shares over 3-4 years.
  • Advantage: Prevents someone from exiting early, but still retains large shares in the long term.
  • In investor circles, vesting is considered the standard.

• • Talk openly about expectations, workload and goals.
  • Clarify what everyone is prepared to give - and what they expect in return.
  • Keep the agreements in writing in the articles of association fixed.

The fair distribution of shares in the founding team is a balancing act between the past, present and future. It is important that every founder feels seen and valued - and that the agreement is sustainable in the long term.

Tip: Uses a External moderation (e.g. coach, notary, lawyer) if the discussions become difficult. An objective view from the outside can help to defuse conflicts at an early stage.