When you first launch your startup, the equity split between co-founders often feels fair. Fast forward a couple of years, and you may find that the original allocations no longer reflect actual contributions. This is where dynamic equity allocation can save the day (and sometimes even your cofounding relationship), ensuring fairness over time as your startup evolves. Here’s why you should know this as early as possible.

Traditional equity splits can lock you into allocations that don’t reflect changing roles, contributions, or even team dynamics. With dynamic equity models, like the Slicing Pie method, you can continuously adjust equity based on the ongoing contributions of team members. This method tracks real-time input (like hours worked or financial contributions) and adjusts shares accordingly. Imagine your co-founder initially brought in most of the capital, but over time, the lead developer became the backbone of your product. Shouldn’t their equity grow too? Dynamic equity makes sure it does.

Or consider a scenario where you have three co-founders. One focuses on raising capital, while another works full-time on product development, and the third manages operations. Over time, as capital is raised, the first co-founder’s role diminishes, while the other two scale their efforts. Rather than trying to renegotiate terms, dynamic equity automatically adjusts based on their new levels of input.

With WE.VESTR, you can automate this entire process. Our platform tracks contributions over time, ensuring equity splits are continuously updated. No awkward conversations, just fairness based on data.