DECISION ENGINE BUSINESS-AGNOSTIC FRAMEWORK

Founder Equity Split Decision Engine

An evidence-informed framework separating Historical Work (H), Critical Functions (R), Future Commitment (F), Financial Risk (C), and Governance Alignment.

LOAD BENCHMARK SCENARIO:

01 & 02 / Business Profile & Founder Timeline

ADAPTIVE SETUP

BUSINESS MODEL / SECTOR

ASSESSMENT CUTOFF DATE

Separates past work (Layer A) from future commitments (Layer C).

CURRENT VENTURE STAGE

TEAM FORMATION SCENARIO

Founding Team Roster

Add 2 to 5 founders. Toggle flags to unlock adaptive sections (Historical IP, Part-Time schedule, Cash ledger).

03 / Layer A: Historical Contributions ($H_i$)

DEFAULT WEIGHT: 20%

Anti-Double-Counting Rule: Only score work completed before the assessment date. If a founder was paid a market salary or reimbursed for prior work, reduce their unpaid rating accordingly.

⚙️ Configure Historical Subcomponent Weights (Must Total 100%)

Sustained Effort (%)

Deliverables/Tech (%)

Commercial/Users (%)

IP & Relationships (%)

04 / Layer B: Business-Critical Functions ($R_i$)

DEFAULT WEIGHT: 30%

Instead of assuming fixed startup titles, define the exact functions critical to your business model and assign their importance weights. Each founder is scored across Accountability (35%), Capability (25%), Actual Execution (25%), and Replacement Difficulty (15%).

TOTAL FUNCTION WEIGHT: 100%

🔍 Capability & Organisational Gap Check

05 / Layer C: Future Commitments ($F_i$)

DEFAULT WEIGHT: 35%

Evaluates what each founder commits to deliver from the assessment date onward: Time & Duration (30%), Execution & Milestone Accountability (30%), Future-Fit Skills (20%), and Planned Salary Sacrifice / Opportunity Cost (20%).

06 / Layer D: Cash & Financial Exposure ($C_i$)

DEFAULT WEIGHT: 15%

CAPITAL NORMALISATION MODEL

Stage Multipliers: Idea (1.50x), Prototype (1.35x), MVP (1.20x), Early Rev (1.10x), Established (1.00x).

Transaction-Level Capital Schedule

Separate equity-at-risk from founder loans and reimbursable business expenses. Reimbursable claims and repaid amounts are tracked on the balance sheet, not converted into founder equity.

Founder	Gross Cash Paid	Loans / Reimbursable	Eligible Equity Risk	Stage-Adjusted ($A_i$)	Score ($C_i$)

07 / Layer E: Vesting, ESOP & Governance Alignment

PROTECTION LAYER

A. ESOP Pool & Existing External Shareholders

INCORPORATION STATUS

RESERVED ESOP POOL (%)

EXISTING INVESTOR EQUITY (%)

B. Vesting Schedule & Founder Departure Simulator

VESTING PERIOD (MONTHS)

CLIFF PERIOD (MONTHS)

SIMULATE DEPARTURE AT MONTH:

C. Governance & Deadlock Prevention

DESIGNATED CEO / FINAL TIE-BREAKER

DEADLOCK RESOLUTION MECHANISM

IP ASSIGNMENT STATUS

UNVESTED LEAVER BUYBACK PRICE

08 / Global Weight Sensitivity & Scenario Comparison

NEGOTIATION SANDBOX

The default weights (20% Historical, 30% Critical Roles, 35% Future, 15% Cash Risk) are starting defaults, not universal laws. Adjust the sliders below to inspect how sensitive your recommended allocation is to weight changes.

GLOBAL ENGINE WEIGHTS (AUTO-NORMALISED TO 100%)

A. Historical ($H_i$) 20%

B. Critical Roles ($R_i$) 30%

C. Future Commitment ($F_i$) 35%

D. Cash Risk ($C_i$) 15%

Automated Sensitivity Stress-Test Matrix

Scenario / Weight Perturbation

Compare: Equal vs. Model vs. Founder-Negotiated Split

FOUNDER EQUITY ASSESSMENT INDICATIVE STARTING POINT

Two-founder startup · Prototype Stage

OWNERSHIP VIEW:

Founder-Only (100%) Fully Diluted (ESOP/Inv)

Contribution Breakdown (0–100 Scale)

Layer (Weight)

💡 Why the Allocation Differs

⚠️ Items to Resolve Before Agreement

Methodology Note: Recommended percentages are a structured starting point for negotiation—not legally issued shares or universal standards. Distinguish vesting allocations from current statutory filings.