Discuss: How do you split equity among co-founders?

I was exploring the general consensus regarding equity splitting among co-founders, and how it is normally done.

Whether it’s a 50-50 split between two co-founders or a 40-30-30 split among three co-founders, what’s your take on the best way to split equity?

Alain Raynaud, founder of Startup Conference, has advised many Silicon Valley startups, and through his extensive experience, was able to suggest a good plan on how equity can be divided. He then came up with the Co-Founder Equity Calculator so anyone can too apply it.

Here are some quick tips:

• 10 percent is a minimum to be considered a co-founder. Below that, you are in the range of first employee and should include some salary.
• 4 is the maximum number of real co-founders you should have. If you think you need 6 co-founders, rethink everyone’s role and simplify.
• Every co-founder, including you, should have vesting (typically over 4 years), which solves a lot of issues with future co-founder fights.

Let’s discuss

• Do you agree with Alain Raynaud’s tips above?
• How do you finalise the equity split with your co-founders?
• What are some challenges co-founders typically face when deciding who should get what?
• What was your experience like splitting equity?