Co-founder Equity Split Calculator
Find a fair equity split based on each co-founder’s contribution, risk, commitment, and role — with vesting schedule recommendations and Indian legal guidance.
4-year / 1-year cliff
Standard VC-backed model. 25% after year 1, rest monthly. Most common in India.
3-year / 1-year cliff
Faster vest — good for older founders or second-time founders with prior equity.
4-year / 6-month cliff
Shorter cliff for co-founders who've worked together before incorporation.
Milestone-based
Equity unlocks on MVP, revenue, funding milestones. Common for non-tech co-founders.
Never do 50/50 without a tiebreaker
Equal splits create board deadlock. Use 51/49, or appoint an independent director as tiebreaker. Indian Companies Act requires a majority for most resolutions.
Sign a co-founder agreement first
Before MCA incorporation, document equity, IP assignment, roles, non-compete, buyback triggers. Lawyers charge ₹15,000–50,000 for this — worth every rupee.
Credit pre-incorporation work
If you worked 6+ months before incorporating, negotiate early vesting credit. Many Indian founder agreements allow a “pre-vesting” period for pre-incorporation contributions.
Reserve 10–15% ESOP before Series A
Indian Series A investors will insist on an ESOP pool created pre-money, diluting founders. Create it proactively at seed with a formal ESOP policy under Companies Act 2013.
A free tool by StartupIndiaX.com — India’s startup knowledge portal