What term refers to the percentage of ownership each founder holds?

The term that refers to the percentage of ownership each founder holds is known as Equity Split. This concept is crucial in understanding how ownership in a startup is divided among its founders and possibly among other stakeholders, such as investors and employees.

Equity Split details the exact portions of ownership that individuals have in the company, which influences their financial return on investment, voting power in business decisions, and overall control of the company. It is a foundational aspect in the establishment of a startup, determining how equity is allocated to motivate and compensate founders, align interests, and foster growth.

While the other terms relate to aspects of ownership and contribution in a business context, they do not specifically describe the percentage of ownership among founders as accurately as Equity Split does. Ownership Stake can be a related term but is often used more broadly and isn’t as specific in addressing the ownership dynamics among founders. Capital Contribution refers to the financial investment made by each founder, while Profit Sharing pertains to the division of profits among partners or shareholders, rather than the initial equity ownership structure.