Share Equity Between Founders In Miami-Dade
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The exact numbers vary, but the typical equity grants for founding engineers are in the range of 0.5% to 2%. You can get a sense for it if you scan YC's job board. Getting 1% is typical, and it comes with a one year cliff and a four year vest.
Here's a general breakdown for early-stage companies: Founders: Typically, founders collectively hold 60-70% of the initial equity. Employee Option Pool: Reserving 10-20% for employee options is common. This pool allows for attracting talent, especially in crucial early roles.
The short answer to "how much equity should a founder keep" is founders should keep at least 50% equity in a startup for as long as possible, while investors get between 20 and 30%. There should also be a 10 to 20% portion set aside for employee stock options and, in some cases, about 5% left in a reserve pool.
When your startup is in the initial stages, the founder or the co-founders usually own it entirely, typically in a 50/50 split, or 60/40, depending on various conditions. As you grow, equity is distributed among those who contributed to fund your startup, give you advise, or develop your product/service offerings.
There's no correct answer for deciding the equity split among founders. Often, they default to a 50/50 split or another equal distribution to avoid an uncomfortable conversation. It's an issue that can lead to big problems in a company's future if not properly aired. Sometimes a 50/50 split simply doesn't make sense.
In summary, 1% equity can be a good offer if the startup has strong potential, your role is significant, and the overall compensation package is competitive. However, it could also be seen as low depending on the context. It's essential to assess all these factors before making a decision.
Founders: Typically, founders collectively hold 60-70% of the initial equity. Employee Option Pool: Reserving 10-20% for employee options is common. This pool allows for attracting talent, especially in crucial early roles.
Many believe that an equal split signifies fairness for all and the majority of founders begin with 50/50 equity splits.
If you started as a solo-founder and have made progress on the business (especially if you've already raised), you should consider a something along the line of an 80/20 split of founder shares. In fact, the range I'm seeing is anywhere from 5-20% for the 2nd co-founder.
Of ~22% in founders' equity. This pattern matches with the rule of thumb that dictates founders to park no less than 20-30% collectively for themselves at exit (in an ideal world).
