Apr 6, 2013

How to Divide Equity or Stocks between Startup Founders

How to allocate equity in a startup



A simple math is to divide the Startup stock options into three classes.

1. Founders  (allocate upto 70%)
2. Future       (reserve 20% stocks for future employees)
3. Board Advisers (reserve 10% )

How to Divide Equity or Stocks between Startup Founders



TIP: Early employees take more risk so they should get more shares

Book Advice:  Read "Equity" by Corey Rosen & John Case



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