If I am a founder who has to move to a different country to run a startup, how much more equity should I get compared to a founder who doesn't have to move countries but is contributing an equal amount of work?

I would say no extra equity. You are in this together. Doing a start up is inherently risky. You are moving countries? And? Doing a start up means doing everything and anything to get it going and get it right. Couch surfing, working in really poor environments, moving, working long long long hours.... And all for a shiny glimmering chance. If you are arguing over equity over something like this, at this early stage, suggests to me you are interested in a magic jackpot, not making something that you are both passionate about.

It depends too much on the situation, but in general i'd say you should be compensated in shares or cash for the expenditures and risks you take by moving.

I don't know: There are too many variables to consider and the answer to this questions, as with others about founder divisions of equity, rest on the outcome of the discussions you and (the) other founder(s) should be having about inputs and outputs. What is each of you bringing to the company (network, skill sets, experience and background, cash, IP, other assets)? What are your expectations for commitment to the company (number of hours/week, number of years)? What gaps are there in the founding team and how will you fill them? I always recommend that founders execute a founders' agreement when starting out---not because of any legal necessity but bc the agreement forces discussion of several key issues that often lead to founder breakup. I've seen founders surprise themselves many times by emerging with an agreement much different than they assumed they'd have.  For instance, equal division of equity might not be the right outcome--I've seen founders assuming a 50/50 split decide (amicably) that in fact 60/40 makes more sense.  I've also seen an agreement bring to the surface a founder's intentions to hold back significant IP on which the company's product would be based or founders' plans to devote 3 months (!) to getting the company off the ground before resuming grad school. Airing those issues and clarifying each founder's assumptions and expectations will make a more stable relationship and reduce chances that the company will blow up because of founder dissatisfaction. You can find a decent form of founders' agreement on Docracy.

First, it's up to you and your cofounder to work out what is best for you.  There are no rules you have to follow. In terms of what is "fair", equity should be split according to contributions to the business (time, capital, etc).  What you do outside of the business, including having to move location, does not have to affect that. However, if your cofounder has asked you to move for the good of the business and is willing to compensate you for that then work out something that works for both of you.  Maybe they can share the cost of your move?  Maybe they can offer you some additional shares to reward you for making the move?  (How many shares depends on a lot of things including the value of all other contributions to the business). On the other hand, if your cofounder was happy for you to work in different locations and it was you who decided to move, then that was your choice and demanding additional shares for something you chose to do doesn't really make sense. There are too many factors that can impact this answer to keep it short, so I will go back to my opening line and say that it is up to you and your cofounder to work out what is right for the two of you.  And if you can't work it out, then maybe starting a business together isn't the best idea.

I think someone needs to break this to you, equity is split based on effort put into the company. You leaving your country of residence to move somewhere else, to start or continue your startup, is purely your choice. And it is a personal matter. Please remember this is not a job, where you get relocation bonuses, etc, this is a startup, your startup nonetheless, don't ever argue about an increased equity percentage based on personal circumstances, unless you want an investor to back out almost immediately.

The amount of equity that a founder should get will generally be tied directly to the amount of value they can provide.  This is often difficult to measure early on so having a co-founder that you have a strong amount of trust with is critical. I wouldn't focus too much on location.  Focus on value.  What can you bring to the table?  Marketing?  Growth?  Audience?  Product development?  This is what you need to get something off the ground. Let me know if I can help more.  Ping me at . Good luck! --harris

There is no 'purely theoretical' answers possible for this question, since I am not aware of any  'scientific foundation' behind how you break up equity. Rather, it's a question of what is ethical, which again, is highly subjective! But I will attempt to bring to light all the factors that might affect the equity decision.  You said, ''all other things being equal". I will take that to mean the following two are equal: 1. Weigh in of what each founder brings to the table and relative worth. 2. How much invested/committed is each founder towards the success of the start up. Also that: 3. There are no viable alternatives for moving Then we are left with wanting answers for the following: 4. What worth, do you put on what you leave behind, by moving. 5. Are you benefited in any other way from the move 6. How much does that extra equity translate to each founder. And last, but not the least: 7. Negotiation skills, Power to influence. Any other factors I missed?

There should be a common belief that you will win equally on the opportunity. It is a new venture starting from 0 and hopefully turning into a number with many zeros after it. But I don't believe that the moving founder is entitled to more than the other with the given assumptions. It is a personal manner and not a business manner. The question is if it is worth moving for this opportunity or not? Personally I won't move for just an opportunity to join a no-cash startup, since a move isn't free and might come with a lot of extra cost.