Fair rarely means equal. A split should reflect what each founder actually contributes over time — capital, ongoing work, IP, risk and the relationships that make it work — not just who had the idea. The bigger mistake than the percentage itself is fixing it in stone on day one with no vesting, so it can’t adjust if someone leaves early.
What it depends on
Where judgement stays human: The percentages are the easy part; the vesting, control and leaver terms that make a split survive contact with reality are judgement calls best made with an adviser and, for the agreement itself, a lawyer.
A 50/50 handshake feels fair at the start and becomes the source of the worst disputes, because contributions diverge and there’s no mechanism to reflect that. What protects a friendship is structure: vesting over time, and clarity about what happens if a founder walks away.
Equity is only half the question — control and decision rights matter just as much. Who can bind the company, break a deadlock, or bring in investment should be decided while everyone is still aligned, not in the middle of a fight.
The percentages are the easy part; the vesting, control and leaver terms that make a split survive contact with reality are judgement calls best made with an adviser and, for the agreement itself, a lawyer.
Local Knowledge Ventures · general information current as at 1 September 2026. This is general information only, not personal financial, tax or legal advice.