Cluster Guide

Venture Studio Equity Split & Cap Tables

Standard equity allocation rules, cap table benchmarks, and avoiding predatory studio terms.

Direct Answer:

In a healthy Indian venture studio agreement, founding executives retain 60% to 80% equity post-spinout, the venture studio holds 20% to 40%, and an ESOP pool reserves 10%. Studios taking more than 50% equity create "broken cap tables" that deter institutional VC investors in follow-on rounds.

Cap Table Best Practices

Founders must ensure clean IP assignment, clear equity vesting milestones, and anti-dilution protections that align with industry norms.