Saudi Arabia Benchmark

Founder Equity in Saudi Arabia

Priced for Saudi Arabia · SAR

Founder 1

Founder 2

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Designing a Healthy Co-Founder Equity Agreement

Co-founder equity splits are one of the most critical decisions in a company's lifecycle. Establishing an objective, contribution-based model prevents resentment and cap table paralysis as the company raises outside venture capital.

Key Split Considerations

Frequently Asked Questions

Should co-founders always split equity 50/50?

An equal 50/50 split is only appropriate when both co-founders commit full-time effort, take equal financial risks, and bring comparable execution experience. Unequal risk or commitment calls for dynamic weighted splits.

Why is vesting critical for founder shares?

Standard 4-year vesting with a 1-year cliff ensures that if a co-founder departs early, unvested shares return to the company, protecting the remaining founders and cap table.

How much should an unallocated option pool be?

Early-stage startups typically reserve 10% to 15% of total equity for an employee stock option pool (ESOP) to hire early engineers, product managers, and key personnel.

How are original idea contributions weighted vs execution?

Venture investors and experienced operators heavily prioritize execution and time commitment (70%–80%) over the initial raw concept (20%–30%), because building and scaling creates the actual enterprise value.