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How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

Chris Dixon wrote a blog post about “ The one number you should know about your equity grant “ The one number you should know about your equity grant is the percent of the company you are being granted (in options, shares, whatever – it doesn’t matter – just the % matters). Percent of the outstanding option pool: meaningless.

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How to Fund a Startup

www.paulgraham.com

Theyleave 20% as an options pool for later employees (but they setthings up so that they can issue this stock to themselves if theyget bought early and most is still unissued), and the three founderseach get 25%. So after this the option pool is down to 13.7%). [ Theres only common stock at this stage.