Compute · Assess & Decide · Data & Research
Cofounder vs employee cash-and-equity cost
A side-by-side of cash burned and equity given for filling a role as a cofounder versus an employee over the runway window, plus the company valuation at which the cofounder's extra equity costs more than the cash saved, so the founder can decide which is economically cheaper.
You receive: A pure function: given the fully-loaded employee salary, the cofounder's reduced cash comp, the runway months, the employee equity grant %, the cofounder equity grant %, and the company's current valuation, it returns cashSaved, extraEquityPct, extraEquityCostAtValuation, netCashAdvantage, and equityBreakevenValuation.
Part of Choose Business Model
What you receive
The shape of your delivered file. Your result is generated for your inputs.
Your deliverable is a computed result carrying these fields:
- Cash Saved
- Equity Breakeven Valuation
- Extra Equity Cost At Valuation
- Extra Equity Pct
- Net Cash Advantage
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Scope of the check
What's verified: STUD verifies the cash/equity tradeoff arithmetic and the break-even valuation against the supplied numbers. It does NOT judge whether a cofounder or employee is the better choice for the team, nor predict the exit valuation; it computes the economics implied by the frozen inputs.