Our VC compensation survey is coming out soon, and it’s had me thinking about how we divide ownership — not just in funds, but in partnerships of all kinds.
Over the years, I’ve been part of a number of business partnerships — across investing, operating, and strategic contexts — and I’ve also coached many founders and investors on this topic, too.
Based on all those experiences, here are a few common splits to think about if you’re spinning up a brand new partnership — whether it’s for a one-off project or something that has the potential to be longer-term.
🟰 50/50 – When what’s brought to the table is completely complementary in terms of skills — and there’s rare alignment in working styles and values. It’s the kind of partnership where you can get to work together immediately without friction, and that’s what makes it so powerful. It’s hard to find that kind of match, and when you do, your time to market on whatever you’re building is dramatically faster.
⚖️ 60/40 – When one person is running the business day to day — hiring, pitching, project managing, closing— whereas the other brings brand, distribution, or relationships that make the business possible. What makes this different from the 80/20 scenario (see below) is that the 40 still has real, hands-on responsibilities and contributes meaningfully – maybe even day-to-day – just not with the same level of time intensity as the 60. The 60 could do it alone, but it wouldn’t be nearly the same thing, or wouldn’t get to market as quickly, without the 40.
💼 80/20 (or 90/10) – When one partner creates leverage for the partnership through network access, credibility, fame, or advice — but isn’t involved day-to-day or even week-to-week in some cases. For example, here’s an article from the New Yorker where I suggested this might be the split in the context of a certain political VC partner.
As you can see, I like round numbers when it comes to this kind of thing. If you’re spending time debating whether one person should have 67 points and the other 33 — or 72.5 versus 27.5 — that feels like a gigantic waste of time vs. getting on with it. Especially when you know that:
People will change. Circumstances will change. The market will change.
All of which means that your partnership will almost certainly change.
