The equity review matrix: a framework for fair equity adjustments
A structured framework for startup founders to evaluate whether equity splits still reflect reality. Two axes, nine outcomes, and clear actions for each.
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
Phantom equity explained: how it works for LLCs and service businesses
Phantom equity gives employees the financial upside of ownership without actual ownership. Learn how phantom stock plans work, when to use them, and how they compare to real equity.
Co-founder agreement template: every section you need (with examples)
A complete co-founder agreement template covering equity, vesting, IP, departures, and more. See exactly what each section should say and why it matters.
The equity conversation with a technical co-founder: word-for-word scripts
Copy-paste scripts for the most uncomfortable startup conversation. Exactly what to say when splitting equity with a technical co-founder, with real examples.
Cap table management: what every founder needs to know
Cap table management is more than a spreadsheet. Learn when to upgrade your tools, what mistakes to avoid, and how dynamic equity fits into the picture before you raise.
Vesting schedules explained: cliff, graded, and the 4-year standard
A complete guide to vesting schedule types for startup founders and employees. Compare cliff vesting, graded vesting, reverse vesting, and performance-based schedules with real examples.
Do investors dislike 50/50 equity splits? What the data actually shows
We analyzed how VCs from YC, Sequoia, and Cooley evaluate equal founder splits. The answer is more nuanced than 'investors hate 50/50.' Here's what matters.
Startup Cap Table: How to Build, Manage, and Not Mess It Up
A step-by-step guide to building your startup's cap table from scratch, managing it through funding rounds, and avoiding the mistakes that cost founders equity.
Slicing Pie Calculator: How to Use It and What the Numbers Mean
A step-by-step guide to using the Slicing Pie calculator. Learn how market rates, multipliers, and contribution types affect your equity split, with real examples.
The Dynamic Equity Playbook: Entity Structure, Tax Strategy, and the Path to Exit
You don't have to choose between dynamic equity flexibility and C-corp tax benefits. Start with an LLC, convert when you're ready, and exit with up to $15M in tax-free gains. Here's the playbook.
Pre-Money Valuation: How Early-Stage Startups Set a Price
Pre-revenue startups need a valuation to price options, negotiate with investors, and stay compliant with the IRS. Here are the methods that work and the mistakes to avoid.
Buy Back Your Time with Dynamic Equity
Dan Martell teaches founders to buy back their time by delegating. But how do you compensate the people who take that work off your plate when you can't afford salaries? Dynamic equity.
The AI Equity Arms Race: How AI Startups Are Rewriting Compensation
OpenAI is paying $1.5M per employee in equity. Tender offers are up 60%. Here's how AI startups are changing the rules of equity compensation and what it means for every founder.
The TOC Framework: Rob Walling's Approach to Splitting Startup Equity
Rob Walling's TOC framework splits equity based on Time, Opportunity Cost, and Cash. Here's how it works, how it compares to Slicing Pie, and how to use it with a calculator.
What Is a Cap Table (and Why It Matters)
A cap table tracks who owns what in your company. Here's what it includes, why investors care about it, and how to manage it from day one.
The FTC Non-Compete Ban Is Dead: What Founders Need to Know
The FTC officially dropped its nationwide non-compete ban in September 2025. Here's what happened, what it means for your co-founder agreements, and what to do now.
Convertible Notes vs. SAFEs: Which Is Right for Your Startup?
A practical comparison of convertible notes and SAFEs: how each works, when to use them, and how they affect founder dilution. The complete guide for early-stage fundraising.
Dynamic Equity Is Easier Than You Think
Founders think dynamic equity is complicated. It's not. Tracking time and cash is simpler than the alternative: a co-founder blowup over an unfair split.
QSBS Just Got a Major Upgrade: What Founders Need to Know
The One Big Beautiful Bill Act reduced the QSBS holding period from 5 years to 3 and raised the exclusion cap to $15M. Here's what changed and how it affects your equity.
The INVEST Act: What Changes for Startup Fundraising
The House passed a bipartisan capital formation package that could change who can invest in startups, how you raise on demo days, and crowdfunding limits. Here's what founders need to know.
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.
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.
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.
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.
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.
AMT Risk Is Rising for ISO Holders in 2026: What Changed
New tax law changes make it easier to trigger the Alternative Minimum Tax when exercising ISOs. Here's what changed, how to calculate your exposure, and strategies to minimize the hit.
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.
Slicing Pie: the complete guide to dynamic equity for startups
How the Slicing Pie model actually works, with formulas, GHRR calculations, and real examples. The problems Mike Moyer doesn't mention and how to solve them.
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 to have the co-founder equity conversation without destroying your partnership
A step-by-step framework for the equity conversation most founders avoid. From preparation to documentation, how to discuss ownership without breaking trust.
How much equity should you give startup advisors?
Typical advisor equity ranges from 0.1% to 1%, but most founders get it wrong. Benchmarks by stage, the FAST agreement framework, and when to say no.
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.
Sam Altman on co-founder equity: nearly equal, one extra share, and the conversation you can't skip
Sam Altman's Startup Playbook recommends nearly equal co-founder splits with one extra share to prevent deadlock. Here's what that advice means in practice and where it falls short.
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.
What YC gets right (and wrong) about equal equity splits
Y Combinator recommends equal co-founder equity splits. Their reasoning is partly right, but the research tells a different story. Here's what YC nails and where their advice breaks down.
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.
Famous co-founder equity splits that actually worked (and why)
From Google's 50/50 to Microsoft's 64/36 to Oracle's 60/20/20 — the equity splits behind the biggest tech companies and what made them survive.
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 (and what to do instead)
50/50 splits feel fair until month six. Here's exactly how equal splits create resentment, deadlock, and dead equity, with a framework for 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.
Paul Graham's equity equation and the co-founder question it never answers
Paul Graham wrote the definitive essay on startup equity math. But he never addressed how co-founders should split ownership. Here's why that silence matters.
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.