As a CMU alum, I hate to bad-mouth a professor there, but this guy doesn't seem to understand the psychology of start-ups.
This method may lead to an equity split that seems to reflect the inputs of the founders, but could potentially, and will probably, demotivate the founders who get the smaller pieces.
Does it really seem like a good idea to tell the people you are going to be working with non-stop for the next 3-5 years (hopefully) that you are twice as valuable as they are? It seems like that's going to be a self-fulfilling prophecy.
When I started a start-up this year (www.trailbehind.com), I had the idea, wrote the business plan, raised the money, coded most of the original site, and then split the business right down the middle with my co-founder. Because I want her fully and completely interested in making the site work, and not thinking that this is just some job or somebody else's project.
It seems to me as if the ideal cofounder is one whom:
a) You very nearly can't, or wouldn't do without.
b) Is working as hard as they can to get this thing going.
c) Is totally committed.
d) Can do rare things that you cannot yourself do.
and
e) Feels the same way about you.
In such a circumstance and nearly equitable split is almost certainly the best option.
If you don't feel the same way, there might be some kind of way to split the equity, but it seems much, much harder to get a good outcome. Then again, you probably shouldn't be founding with such a team? I did; and ultimately the other founders bailed or fizzled out, and I had to let them go.
This method may lead to an equity split that seems to reflect the inputs of the founders, but could potentially, and will probably, demotivate the founders who get the smaller pieces.
Does it really seem like a good idea to tell the people you are going to be working with non-stop for the next 3-5 years (hopefully) that you are twice as valuable as they are? It seems like that's going to be a self-fulfilling prophecy.
When I started a start-up this year (www.trailbehind.com), I had the idea, wrote the business plan, raised the money, coded most of the original site, and then split the business right down the middle with my co-founder. Because I want her fully and completely interested in making the site work, and not thinking that this is just some job or somebody else's project.