# Equity Matrix

> Equity Matrix is dynamic equity software for founders and owners of startups and SMBs. It helps teams track contributions, calculate fair ownership, and avoid founder disputes.

## About

Equity Matrix is a SaaS business application for managing company ownership — NOT related to racial equity or diversity matrices.

Instead of guessing ownership percentages upfront (like a 50/50 split), Equity Matrix tracks actual contributions (time, cash, revenue) and calculates ownership dynamically based on what each person puts in.

## Key Features

- Dynamic equity tracking: ownership adjusts automatically based on contributions
- Contribution logging: track time (at market rates), cash investments, and expenses
- Fair ownership calculations: transparent formulas everyone can see
- Founder dispute prevention: clear records prevent arguments about who did what
- Protected equity: reserve fixed percentages for IP, ideas, or minimum stakes
- Exit protection: built-in vesting cliffs and loyalty protections

## Pricing

- Core Plan: $24/month (annual) or $36/month — up to 12 active members
- 14-day free trial on all plans, no credit card required

## Links

- Website: https://equitymatrix.io
- App: https://app.equitymatrix.io
- Pricing: https://equitymatrix.io/pricing
- Equity Calculator: https://equitymatrix.io/calculator
- FAQs: https://equitymatrix.io/resources/faqs
- Glossary: https://equitymatrix.io/resources/glossary
- Resources: https://equitymatrix.io/resources
- Use Cases: https://equitymatrix.io/use-cases
- Comparisons: https://equitymatrix.io/compare
- US Partnership Laws by State: https://equitymatrix.io/resources/partnership-laws
- European Partnership Laws by Country: https://equitymatrix.io/resources/european-partnership-laws

## Blog (85 posts)

- [The state of equity distribution: how ownership actually splits](https://equitymatrix.io/blog/state-of-equity-distribution): We mapped how startup equity really splits across investors, founders, and the option pool from seed to Series C, and where employees quietly get diluted out.
- [Share it on the way up: why we think about business differently](https://equitymatrix.io/blog/think-differently-about-business): Chouinard reinvented what a company could be to protect Patagonia's mission. Most of us keep the old equity playbook because it's the only one we've seen.
- [A better model for wealth distribution: share it on the way up](https://equitymatrix.io/blog/four-ways-to-share-the-wealth): Taxes claw wealth back. Philanthropy begs it back. Our thesis on inequality — share ownership before the fortunes ever pool.
- [The Third Ledger: what the next wave of philanthropy misses about ownership](https://equitymatrix.io/blog/the-third-ledger): The debate over AI-era philanthropy is a fight about what to do with wealth after it's made. There's an older question hiding underneath: who owns it while it's being built.
- [The most valuable company went from $90B to nearly $5T. Who owns the difference?](https://equitymatrix.io/blog/where-did-the-equity-go): In 1985 the biggest US company, IBM, was worth about $91 billion. Today the biggest, Nvidia, is worth nearly $5 trillion, and the top 10 make up a record 42% of the S&P 500. The value exploded. The ownership concentrated. Here's what that means for everyone else.
- [How to fire a co-founder (and what happens to their equity)](https://equitymatrix.io/blog/how-to-fire-a-co-founder): Firing a co-founder is legally and emotionally brutal, and the equity is the part that haunts you. Here's how to do it right, what vesting and cliffs actually protect, and how to avoid leaving a dead stake on your cap table.
- [How much equity should a CTO get?](https://equitymatrix.io/blog/how-much-equity-should-a-cto-get): A CTO who co-founds usually gets 20-50%. One who joins later gets 1-5%. The gap comes down to timing, risk, and whether they built the thing or just run it. Here's how to land on a number.
- [The founding fathers would have loved dynamic equity](https://equitymatrix.io/blog/founding-fathers-dynamic-equity): Adams called wealth a monster. Jefferson said the earth belongs to the living. What the founders got right about fairness — and how dynamic equity finishes the thought.
- [Equity for small businesses: partnerships and LLCs](https://equitymatrix.io/blog/equity-for-small-businesses): Equity isn't just a startup problem. Here's how partnerships, LLCs, and S-corps handle ownership — and which structure protects you when contributions aren't equal.
- [Co-founder equity in Europe vs the US: what founders need to know](https://equitymatrix.io/blog/co-founder-equity-europe-vs-us): Default equity splits, formation costs, community property, and vesting rules differ dramatically between the US and Europe. A practical comparison for founders building across borders.
- [Does your small business need an equity agreement?](https://equitymatrix.io/blog/does-small-business-need-equity-agreement): Most small businesses start with a handshake and figure out equity later. By the time they realize they need an agreement, the damage is already done. Here's why you need one now.
- [When a co-founder leaves: outcomes from 150+ cases](https://equitymatrix.io/blog/cofounder-departure-outcomes-study): We studied 150+ real co-founder departures. 28% ended in litigation, only 35% were clean exits, and vesting was the single biggest predictor of outcome.
- [LLC profit sharing when partners contribute differently](https://equitymatrix.io/blog/llc-profit-sharing): Profits don't have to follow ownership percentages in an LLC. Here's how to structure profit sharing that reflects what each partner actually contributes.
- [How to add a partner to an existing business](https://equitymatrix.io/blog/how-to-add-partner-to-existing-business): Adding a partner to a business you already own? Here's how to structure the deal, value the business, and protect yourself legally.
- [Startup equity splits in 2026: nobody tracks contributions](https://equitymatrix.io/blog/state-of-equity-splits-2026): We evaluated 200+ real equity split discussions across Reddit, HN, and Indie Hackers. Most founders wing it, most regret it, and almost nobody tracks contributions. Here's the data.
- [7 Slicing Pie alternatives for tracking equity in 2026](https://equitymatrix.io/blog/slicing-pie-alternatives): Find the best Slicing Pie alternative for contribution-based equity: Equity Matrix, SliceFair, WE.VESTR, Cake Equity, Vestd, spreadsheets, and cap table tools.
- [Sweat equity in small businesses: how to value time](https://equitymatrix.io/blog/sweat-equity-small-business): When one business partner invests time and the other invests money, how do you split ownership fairly? A practical guide for LLCs and partnerships.
- [How to buy out a business partner: a complete guide](https://equitymatrix.io/blog/how-to-buy-out-business-partner): A practical guide to buying out your business partner, from valuing the business to structuring the deal and avoiding costly mistakes.
- [How to split ownership in an LLC](https://equitymatrix.io/blog/how-to-split-ownership-in-an-llc): LLC ownership doesn't have to be 50/50. Here's how to split membership interests based on cash, time, skills, and ongoing contributions.
- [My business partner isn't pulling their weight](https://equitymatrix.io/blog/business-partner-not-pulling-weight): When one partner does all the work while the other collects half the profits, resentment builds fast. Here's how to address it before the partnership implodes.
- [Equity for your first SaaS hire: how much to give](https://equitymatrix.io/blog/equity-for-your-first-saas-hire): Your first hire is the hardest equity decision after the co-founder split. Here's how to structure it so you attract the right person without giving away too much.
- [409A valuations explained: cost, timing, and risks](https://equitymatrix.io/blog/409a-valuations-explained): A 409A valuation sets the fair market value of your startup's common stock. Here's when you need one, what it costs, and the penalties for skipping it.
- [What are your shares actually worth?](https://equitymatrix.io/blog/what-are-your-shares-actually-worth): Your equity percentage means nothing without a dollar value behind it. Here's how to estimate what your shares are really worth based on your business type and revenue.
- [Your co-founder is stepping back: what to do next](https://equitymatrix.io/blog/co-founder-leaving-what-to-do): A time-based action plan for when a co-founder reduces their commitment or leaves. What to protect, what to discuss, and how to keep your startup alive.
- [Equity review matrix: a framework for fair adjustments](https://equitymatrix.io/blog/equity-review-matrix-framework): A structured framework for startup founders to evaluate whether equity splits still reflect reality. Two axes, nine outcomes, and clear actions for each.
- [Phantom equity explained: how it works for LLCs](https://equitymatrix.io/blog/phantom-equity-explained): Phantom equity pays like ownership without giving up actual shares. How phantom stock plans work for LLCs and service businesses, tax treatment, and when it beats real equity.
- [Co-founder agreement template: every section you need](https://equitymatrix.io/blog/co-founder-agreement-template): A complete co-founder agreement template covering equity, vesting, IP, departures, and more. See exactly what each section should say and why it matters.
- [Equity conversation with a technical co-founder](https://equitymatrix.io/blog/equity-conversation-technical-cofounder-script): Word-for-word scripts for splitting equity with a technical co-founder. What to say, how to frame the conversation, and how to protect the relationship while getting to a fair split.
- [Cap table management: what every founder needs to know](https://equitymatrix.io/blog/cap-table-management-guide): 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 4-year](https://equitymatrix.io/blog/vesting-schedules-explained): The standard 4-year vesting schedule with a 1-year cliff, explained. How cliff, graded, and reverse vesting work, plus acceleration clauses, 83(b) elections, and what to negotiate.
- [Startup cap table: how to build, manage, and not mess it up](https://equitymatrix.io/blog/startup-cap-table-how-to-build): 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: what the numbers mean](https://equitymatrix.io/blog/slicing-pie-calculator-guide): 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: LLC to C-corp to exit](https://equitymatrix.io/blog/llc-to-c-corp-qsbs-strategy): 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](https://equitymatrix.io/blog/how-to-value-startup-for-equity): How to value a pre-revenue startup: Berkus method, scorecard method, cost-to-duplicate, and comparable transactions. Which method works at which stage, with examples.
- [Buy back your time with dynamic equity](https://equitymatrix.io/blog/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.
- [AI equity arms race: how startups rewrite compensation](https://equitymatrix.io/blog/ai-startup-equity-compensation-2026): OpenAI pays $1.5M/employee in equity. xAI's pool is 12%. Tender offers up 60%. The AI compensation arms race is rewriting the rules for every startup trying to hire.
- [Rob Walling's TOC framework for splitting equity](https://equitymatrix.io/blog/toc-framework-rob-walling-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)](https://equitymatrix.io/blog/what-is-a-cap-table): 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](https://equitymatrix.io/blog/ftc-non-compete-ban-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 you?](https://equitymatrix.io/blog/convertible-notes-vs-safes): 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](https://equitymatrix.io/blog/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](https://equitymatrix.io/blog/qsbs-changes-2025-founders-guide): 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](https://equitymatrix.io/blog/invest-act-startup-fundraising-changes): 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 dilute equity](https://equitymatrix.io/blog/safe-notes-explained): How SAFE notes actually work: conversion mechanics, valuation caps vs. discount rates, how much they dilute founders, and the terms you should negotiate before signing.
- [How much equity to give employees: benchmarks](https://equitymatrix.io/blog/employee-equity-benchmarks): 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 value startup contributions](https://equitymatrix.io/blog/equity-calculator-methodology): 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](https://equitymatrix.io/blog/how-to-split-equity-startup): 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](https://equitymatrix.io/blog/indie-hackers-guide-to-equity-splits): 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](https://equitymatrix.io/blog/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](https://equitymatrix.io/blog/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.
- [AMT risk is rising for ISO holders in 2026: what changed](https://equitymatrix.io/blog/amt-risk-iso-holders-2026): 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.
- [Jobs create income. Equity creates wealth.](https://equitymatrix.io/blog/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](https://equitymatrix.io/blog/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.
- [Why we're building Equity Matrix](https://equitymatrix.io/blog/why-were-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](https://equitymatrix.io/blog/employee-equity-is-disappearing): 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](https://equitymatrix.io/blog/slicing-pie-problems): Slicing Pie has 12 problems the book doesn't warn you about: no cliff, hourly rate disputes, time inflation, investor confusion, and more. Here's what breaks and how to fix it.
- [Dynamic equity for AI startups: when compute costs more](https://equitymatrix.io/blog/dynamic-equity-for-ai-startups): 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](https://equitymatrix.io/blog/how-to-split-equity-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](https://equitymatrix.io/blog/should-you-raise-vc): Most startups shouldn't raise VC. Learn the honest criteria for VC-fundable businesses and when bootstrapping with dynamic equity is the smarter path.
- [How to sell startup shares on secondary markets](https://equitymatrix.io/blog/secondary-markets-startup-equity): Want to sell startup shares before an IPO? Compare Forge, EquityZen, Hiive, and EquityBee. How secondary markets work, what they cost, and who qualifies.
- [What happens when a co-founder stops contributing](https://equitymatrix.io/blog/what-happens-when-cofounder-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: a complete guide](https://equitymatrix.io/blog/iso-guide-startup-employees): 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: options, RSUs, and more](https://equitymatrix.io/blog/types-of-startup-equity): 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.
- [Greatest philanthropists: life after the fortune](https://equitymatrix.io/blog/greatest-philanthropists-history): 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: ancient trade to stocks](https://equitymatrix.io/blog/history-of-equity): 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](https://equitymatrix.io/blog/how-to-implement-slicing-pie): Ready to use dynamic equity? Here's exactly how to implement the Slicing Pie model, from initial setup to daily tracking to eventual conversion.
- [83(b) elections explained: save thousands on taxes](https://equitymatrix.io/blog/83b-election-explained): 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.
- [Why dynamic equity startups should be LLCs](https://equitymatrix.io/blog/why-llc-for-dynamic-equity): 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.
- [The 60 million workers locked out of wealth creation](https://equitymatrix.io/blog/gig-workers-deserve-equity): 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: complete guide to dynamic equity](https://equitymatrix.io/blog/slicing-pie-guide): How the Slicing Pie model works: formulas, GHRR calculations, multipliers, and real examples. Plus the problems Mike Moyer's book doesn't cover and how to solve them.
- [What investors look for in your cap table](https://equitymatrix.io/blog/what-investors-look-for-in-cap-tables): 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](https://equitymatrix.io/blog/co-founder-equity-conversation-how-to-have-it): Step-by-step framework for discussing co-founder equity splits. What to prepare, what to say, how to handle disagreements, and what to put in writing afterward.
- [How much equity for advisors? 5 factors most founders miss](https://equitymatrix.io/blog/how-much-equity-for-advisors): Most founders overpay advisors. Carta's 2024 data shows median grants dropped to 0.21%. See updated benchmarks by stage, the FAST v3 framework, and 3 red flags to avoid.
- [Sweat equity: how to value time when there's no cash](https://equitymatrix.io/blog/sweat-equity-valuation): 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's co-founder equity advice, explained](https://equitymatrix.io/blog/sam-altman-co-founder-equity): 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](https://equitymatrix.io/blog/how-to-bring-on-cofounder-after-starting): 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.
- [Solo founder to co-founder: when to add a partner](https://equitymatrix.io/blog/solo-to-cofounder-transition): 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](https://equitymatrix.io/blog/what-yc-gets-right-and-wrong-about-equal-splits): Y Combinator says split equity equally. Noam Wasserman's research says that kills startups. Who's right? Both, depending on your team. Here's the nuance YC skips.
- [Dead equity: the silent killer of startups](https://equitymatrix.io/blog/dead-equity-kills-startups): Dead equity is ownership held by someone who stopped contributing. It scares investors, demoralizes teams, and locks up your cap table. Here's how to prevent and fix it.
- [When to convert dynamic equity to a cap table](https://equitymatrix.io/blog/when-to-convert-dynamic-equity-to-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?](https://equitymatrix.io/blog/dynamic-vs-fixed-equity): 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 worked](https://equitymatrix.io/blog/famous-equity-splits-that-worked): Google (50/50), Microsoft (64/36), Oracle (60/20/20), Instagram (60/40). How these co-founder splits survived — plus 6 companies where generous equity created employee millionaires.
- [Do investors dislike 50/50 equity splits?](https://equitymatrix.io/blog/do-investors-dislike-50-50-splits): Do investors dislike 50/50 equity splits? Yes — and here's the data. How equal splits create deadlock and resentment, what investors actually think, and the 51/49 alternative.
- [Paul Graham's equity equation: what it misses](https://equitymatrix.io/blog/paul-graham-equity-equation-co-founders): Paul Graham's equity equation tells you how much to give investors and employees. It says nothing about co-founder splits. Here's why, and what to do instead.
- [Famous co-founder equity disputes: what went wrong](https://equitymatrix.io/blog/famous-cofounder-disputes): Eduardo Saverin lost Facebook. Reggie Brown sued Snapchat for $157M. Noah Glass got erased from Twitter. The equity mistakes that cost co-founders billions.

## Tags (39)

advisors, ai-startups, cap-table, case-studies, co-founders, contributions, convertible-notes, dead-equity, dilution, dynamic-equity, employee-equity, equity, equity-calculator, equity-compensation, equity-splits, fundraising, gig-economy, how-to, international, legal, liquidity, llc, operating-agreements, partnerships, profit-sharing, red-flags, safe-notes, slicing-pie, small-business, startup-compensation, startup-equity, stock-options, sweat-equity, taxes, technical-cofounder, thought-leadership, vesting, wealth-building, workplace-equity

## Contact

- Email: support@equitymatrix.io
- LinkedIn: https://www.linkedin.com/company/equity-matrix