Founder Agreements: What to Include and Why
A co-founder agreement is the most important document most startups never write. Here's exactly what to include — from equity and vesting to IP, departures, and decision-making.
Sebastian Broways
Co-Founder at Equity Matrix
Sebastian is a product leader with over a decade of experience building digital products. He co-founded and sold Nucleus, a remote collaboration platform for group learning and masterminds, where he experienced firsthand the pain of negotiating equity with co-founders: the 50/50 trap, dead equity from departed contributors, and lawyers who didn't understand dynamic models.
After seeing how broken equity was, from his own co-founder negotiations to job offers with insultingly low equity packages, he knew dynamic equity was the answer. But the tools on the market had limited functionality, no legal structure, and didn't come across as serious platforms that founders or investors would trust. So he assembled a team of startup veterans to build Equity Matrix. Fair co-founder splits are just the starting point. The bigger vision is to make meaningful equity ownership accessible across the full employee spectrum, because he believes broader ownership is the most direct way to reverse the growing wealth gap.
He writes about startup equity, dynamic ownership, and why the way we share equity needs to change.
Articles by Sebastian
How Much Equity to Give Employees: Benchmarks by Role and Stage
Practical benchmarks for employee equity grants by role, seniority, and company stage. Learn typical ranges for engineering, product, sales, and executive hires.
How Equity Calculators Work: A Guide to Valuing Startup Contributions
How equity calculators determine fair ownership splits based on time, cash, and other contributions. Understand the methodology behind contribution-based equity models.
How to Split Equity in a Startup: The Complete Guide
The definitive guide to splitting startup equity among co-founders. Learn contribution-based approaches, common mistakes, and when to use dynamic equity instead of fixed splits.
SAFE Notes Explained: How They Work and How They Dilute Founder Equity
A complete guide to SAFE notes — how they convert to equity, valuation caps vs. discount rates, dilution mechanics, and what founders need to know before signing.
The Indie Hacker's Guide to Splitting Equity
Equity splits for bootstrappers are different. No VCs, no massive exits, no standard playbook. Here's how to split equity when you're building a lifestyle business or bootstrapped startup.
Signs Your Equity Split Is Unfair
73% of co-founder conflicts stem from poorly designed equity splits. Here are the red flags that indicate your split is unfair, with real examples from Facebook, Snapchat, and Twitter.
What Lawyers Say About Dynamic Equity
Startup attorneys are divided on dynamic equity. Some say it eliminates disputes. Others say investors hate it. Here's what the legal experts actually think, and who's right.
Jobs Create Income. Equity Creates Wealth.
Salaries pay the bills. Equity builds generational wealth. Here's why ownership matters more than most people realize, and why it's still not distributed fairly.
True Economic Equity Includes Ownership
DEI frameworks measure hiring, pay, and promotion. But they ignore the biggest wealth-builder of all: equity ownership. It's time to expand the equity matrix.
10 Slicing Pie Mistakes That Sink Startups
Most Slicing Pie implementations fail. Not because the model is broken, but because teams make the same avoidable mistakes. Here's what goes wrong and how to fix it.
Why We're Building Equity Matrix
From 50/50 splits to dead equity to paying lawyers who didn't help, here's the full story behind Equity Matrix and why fair ownership needs better tools.
Employee Equity Shrank by a Quarter and It's Not Coming Back
Between 2022 and 2023, startup equity grants dropped 26%. The market has recovered, but equity hasn't. Here's what that means for founders and employees.
Slicing Pie Problems: What the Book Doesn't Tell You
The Slicing Pie model is brilliant in theory. But after implementing it with dozens of startups, we've found critical gaps. Here's what to watch for.
Dynamic Equity for AI Startups: When Compute Costs More Than People
AI startups face unique equity challenges. When GPU costs dwarf salaries, how do you fairly split ownership between capital and contribution? A framework for AI founders.
How to Split Equity in a Two-Person Startup
The two-founder startup is the most common configuration. Here's how to split equity fairly without defaulting to 50/50 or making it up as you go.
Should You Raise VC? An Honest Assessment
Most startups shouldn't raise VC. Learn the honest criteria for VC-fundable businesses and when bootstrapping with dynamic equity is the smarter path.
Secondary Markets for Startup Equity: How to Sell Shares Before an IPO
A guide to secondary markets for startup employees and early investors. Compare EquityBee, Forge, EquityZen, and other platforms for selling private company shares.
What Happens When a Co-Founder Stops Contributing
The slow fade is more common than the dramatic exit. Here's how to recognize when a co-founder has checked out and what to do about it.
ISOs for Startup Employees: The Complete Guide to Stock Options, Taxes, and Exercise Strategies
Everything startup employees need to know about Incentive Stock Options: how they work, the AMT trap, when to exercise, early exercise strategies, and how to avoid costly mistakes.
Types of Startup Equity: Stock Options, RSUs, LLC Units, and More
A complete comparison of equity types including ISOs, NSOs, RSAs, RSUs, LLC membership units, and share classes. Understand tax implications, pros, cons, and when to use each.
The Greatest Philanthropists in History: What Happens After You Build the Fortune
From Carnegie's libraries to MacKenzie Scott's no-strings giving, the world's biggest philanthropists share one thing: they built wealth through equity before giving it away.
A Brief History of Equity: From Ancient Trade to Silicon Valley Stock Options
How did we get from sole proprietors to cap tables? The history of equity explains why ownership looks the way it does today and how startups changed the game.
How to Implement Slicing Pie: A Step-by-Step Guide
Ready to use dynamic equity? Here's exactly how to implement the Slicing Pie model, from initial setup to daily tracking to eventual conversion.
Equal Splits Are Increasing (And That's Terrifying)
Despite decades of evidence that 50/50 equity splits cause co-founder conflicts, they're more common than ever. Here's why this trend is dangerous.
83(b) Elections Explained: The Tax Filing That Can Save You Thousands
The 83(b) election lets you pay taxes now on equity worth little, avoiding massive tax bills later. Here's exactly what it is, when to file, and why it matters.
Converting a Dynamic Split to a Fixed Cap Table
At some point, your dynamic equity arrangement needs to become a traditional cap table. Here's when to convert, how to do it, and what to watch out for.
Why Your Dynamic Equity Startup Should Be an LLC (Not a Corporation)
Corporations create taxable events every time you issue shares. LLCs let you adjust ownership daily without tax headaches. Here's how the entity choice affects your equity structure.
When Founders Shared Equity Right: 6 Stories That Created Millionaires
Not all equity stories end in lawsuits. These founders shared ownership generously—and created hundreds of millionaires in the process. Here's what they did differently.
The 60 Million Workers Locked Out of Wealth Creation
Gig workers power the modern economy but can't access the one thing that builds generational wealth: equity. Here's why that needs to change.
The Complete Guide to Slicing Pie: Dynamic Equity for Startups
Learn how the Slicing Pie model works, when to use it, and how to implement contribution-based equity splits fairly. The definitive 2026 guide.
What Investors Look for in Your Cap Table (And What Scares Them Off)
Investors scrutinize cap tables before writing checks. Learn the ownership benchmarks by stage, red flags that kill deals, and how to structure a fundable cap.
How Much Equity Should You Give Startup Advisors?
Advisor equity ranges from 0.1% to 1% depending on stage and involvement. Learn the standard frameworks, vesting schedules, and mistakes that cost founders millions.
Sweat Equity: How to Value Time and Work When There's No Cash
Sweat equity lets founders earn ownership through work instead of money. Learn how to calculate fair value, avoid disputes, and handle the tax implications.
How to Bring on a Co-Founder After Starting: Fair Equity for Late Joiners
Adding a co-founder after you've started is tricky. Learn how to calculate fair equity, structure vesting, and avoid the mistakes that create resentment down the road.
From Solo Founder to Co-Founder: When and How to Add a Partner
Adding a co-founder after starting solo changes everything. Learn when it makes sense, how to evaluate candidates, and how to structure the partnership.
Dead Equity: The Silent Killer of Startups
Dead equity—shares held by people who no longer contribute—has killed more startups than bad products. Learn how it happens and how to prevent it.
When to Freeze Your Equity Split: Converting Dynamic Equity to a Cap Table
Dynamic equity doesn't always need to end. Learn the key triggers—investment rounds, key hires, founder exits—that signal it's time to freeze your startup's equity split.
Dynamic vs. Fixed Equity: Which Model Fits Your Startup?
Fixed equity locks in ownership on day one. Dynamic equity adjusts based on contributions. Here's how to choose the right model for your stage.
83(b) Elections Go Digital: What Founders Need to Know About the New IRS Filing Option
The IRS now lets you file 83(b) elections online through Form 15620. Here's how it works, what changed, and the quirks you should know before clicking submit.
The Hidden Cost of 50/50 Equity Splits
Equal 50/50 equity splits feel fair when you start your company. But they create resentment, deadlock, and investor concerns that surface months later. Here's what to do instead.
Vesting Explained: Cliffs, Acceleration, and the Schedule That Protects Everyone
Vesting protects founders from early departures and ensures equity is earned over time. Learn cliffs, acceleration triggers, and the 83(b) election.
Famous Co-Founder Equity Disputes: What Went Wrong
The equity mistakes behind Facebook, Snapchat, Twitter, and Zipcar cost founders billions. Learn what went wrong and how to protect your startup from the same fate.