Cofounder Equity Split Vignettes
Splitting equity amongst cofounders is never an easy process. For the entrepreneurs, equity can sometimes be a measure of one’s value to a company, which can turn discussions over how to split it amongst the cofounding team into very personal and heated debates. This case gives students the opportunity to work through these challenges with the help of three vignettes, each focused on a team of cofounders hoping to split the equity of their fledgling companies successfully.
The case highlights the challenges faced when cofounders must decide how to split equity amongst themselves. The teaching objective of the case is to give students an opportunity to discuss three situations in which the equity splits amongst cofounders could have gone better.