Foundrs co-founder equity calculator

Web and SaaS

equity calculator

SHOW HN2011

136points
50comments
#69of 1,097 in 2011
Top 7%of 2011 by points

How HN took it

MixedNo clear lean

9 positive, 10 neutral or asking, 4 mixed, 7 critical, out of 30 comments about the project. Thread score +0.10.

Idea: 4 for, 5 againstPerformance: 4 for, 1 againstExecution: 1 for, 1 against

The thread, comment by comment

Each row is a top-level comment and its replies, in HN's order. Select a cell to open that comment on HN.

positive neutral or mixed critical about another commenter or something else the maker

What HN said

What people liked

  • Results matched real splits people had at their companies

    From 3 comments
    • As a validation data point, it came to within 5 points on the actual 3-way split at my company.
      rdl on HN
    • I have been running my startup for a little over 2 years now (bootstrapped). After inputting my constraints/situation to the simulation, it was pretty much spot on. I definitely…
      phereford on HN
    • Just tested it out and it's pretty cool. Obviously not a be all end all, but tested out some situations I'm in and some which my friends are in, and it gets pretty close for my…
      teamlaft on HN
  • Interesting way to frame the question and sanity check splits

    From 3 comments
    • I think it's great the way the rule of 72 is great: awesome for a quick sanity check, terrible to become the sole input. I'm pretty sure that's exactly what you were going for;…
      invalidOrTaken on HN
    • I found this a pretty interesting and useful way to look at this. One additional factor I would love to see: situations where one person is coming on a "late" cofounder (e.g. a…
      zngtk4 on HN
    • I think its perfect. It calculated what I had long thought was a fair split based on what I have done in the past. One thing that would be interesting would be to add…
      phlux on HN

Objections

  • Ignores risk and personal financial commitment

    From 2 comments
    • This doesn't take into account much in the way of risk. Really, those that take the most financial and legal risk (e.g. if the company goes under, who's on the line), should have…
      shoeless on HN
    • That's the thing, the only time I feel like founders should get a different distribution of equity is if one of the founders is paying salaries, paying for hosting, paying for…
      Ixiaus on HN
  • Equity splits are a negotiation, not a formula

    From 2 comments
    • I actually came into this situation with my current startup. My partner had the MVP built by contractors before I came on. He is completely BD/sales, but he had a close advisor…
      dlevine on HN
    • I've done about 4 startups now - and always chosen to split the equity evenly between the founders, despite the fact a tool like this one would have suggested I would have been…
      adamt on HN
  • Suspected sock-puppet upvotes from new accounts

    From 3 comments
    • Not cool the way you got to the front page. Imagine if everyone did the same.
      rokhayakebe on HN
    • Presumably he's referring to the plethora of comments below from accounts created within the last hour whose only comment is a one or two word praise for this submission. It…
      andyn on HN
    • I suspect more meatpupptetry, as in promoting on twitter/facebook and asking friends and followers to come and leave feedback and vote up the submission. Nothing wrong with that,…
      redthrowaway on HN

Requests

  • Ability to change weighting

    From 1 comment
    • It'd be nice to be able to play with the weighting.
      davidw on HN
  • Handle partial-time and timeline changes

    From 1 comment
    • Mostly accurate for me. I've been talking to two developers about joining a bootstrapped startup I've been working on... I'm full-time, MVP is 80% of the way, and its in a space…
      a5seo on HN
  • Handle late-joining co-founders and work to date

    From 2 comments
    • I found this a pretty interesting and useful way to look at this. One additional factor I would love to see: situations where one person is coming on a "late" cofounder (e.g. a…
      zngtk4 on HN
    • My 0.02€ - can it include a way of proportioning "work to date" - ie let's say the startup has been incubating for 2 years, and it's now found 2 co-founders... How do I model…
      ragmondo on HN
  • Checkboxes instead of radio buttons for investor question

    From 1 comment
    • "Who pitches investors" should probably be checkboxes, not radio buttons.
      portman on HN

Questions

  • What is the methodology?

    From 1 comment
  • How to round non-round splits like three equal founders

    From 1 comment
    • I didn't implement rounding in the first version for a very simple reason: in the case of 3 equal founders, the answer should be 33.33/33.33/33.33. So rounding to the nearest 5…
      alain94040 on HN

Alternatives named

  • Excel founders pie calculator

    From 1 comment
    • http://www.andrew.cmu.edu/user/fd0n/35%20Founders%20Pie%20Calculator.htm A similar tool in Excel.
      tuhin on HN
  • Joel Spolsky's founder equity advice

    From 1 comment
    • Joel Spolsky wrote a little on founder equity and a potential method to divide ownership.…
      wonginator1221 on HN

Category, keywords, summaries and labels on this page were made by AI (Thread Reader v2) and not checked by hand. Each point links to the comments it came from.

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