IN EARLY STAGE TECH COMPANIES, HOW MUCH STOCK SHOULD YOU DISTRIBUTE? The true founders will likely take equal shares of the pie, and then dilute themselves to give stock to early key hires, as much as 5% each; quite early on it is important to creat an Option Pool for future hires, of about 20% pre-Series A, so that parameters are set on the extent of founder dilution. If the key members are not incentivized sufficiently, they may be lost. Too much, and equity has been wasted.
linkedin post 2022-06-29 05:12:48
Nigel Fleming
September 21, 2022