Dynamic Equity Split or How Everyone is a Co-Founder

The main idea is to take into account and recalculate our shares every month. We count it by each co-founder’s monthly contribution. It’s calculated in either the investment of money or effort (aka Sweat Equity). That’s what we call the Dynamic Equity Split scheme. Each co-founder continually earns shares, the number of which depends on the contribution to the business. The more you do or contribute in cash, the more shares you earn. In the second part of the article, I share some actual calculations and formulae that will come in handy should you wish to understand and implement a similar scheme for your team.

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